The CFPB has filed its opposition to the motion of the two trade groups challenging the payment provisions in the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule) that asks the court to extend its stay of the compliance date until 286 days after their appeal to the Fifth Circuit is resolved. … Continue Reading
Payday Lending
Trade groups file appeal from federal district court’s award of summary judgment to CFPB in challenge to payday loan rule
By Ballard CFS Group on
The two trade groups challenging the payment provisions in the CFPB’s 2017 final payday/auto title/high-rate installment loan rule have filed an appeal with the Fifth Circuit from the Texas federal district court’s final judgment granting the CFPB’s summary judgment motion and staying the compliance date for the payment provisions until 286 days after August 31, 2021.… Continue Reading
Texas federal district court rules in favor of CFPB in challenge to its Payments Rule and extends compliance-date stay for 286 days
By Ballard CFS Group on
More than eight months after the close of briefing, the Texas federal district court has finally ruled in the challenge by two industry trade groups to the CFPB’s Payments Rule. The court’s award of summary judgment to the CFPB on the constitutional challenges to the Rule was predictable. We are disappointed that the court failed to find the Rule’s treatment of debit cards to be arbitrary and capricious but pleased that it sided with the trade groups in granting the industry an additional 286 days to come into compliance with the Rule.… Continue Reading
CFPB and trade groups conclude briefing on compliance date for payment provisions in payday loan rule
By Ballard CFS Group on
The CFPB and the two trade groups challenging the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule) have filed responses with the Texas federal court regarding a compliance date for the 2017 Rule’s payment provisions.
The responses reply to the briefs filed by the parties following the court’s issuance of an order requesting additional briefing “concerning what would be the appropriate compliance date if the court were to deny Plaintiffs’ motion for summary judgment and grant Defendants’ motion for summary judgment.” … Continue Reading
Texas federal court requests briefing on compliance date for payment provisions in payday loan rule
By Ballard CFS Group on
Posted in CFPB, Payday Lending
The Texas federal district court hearing the lawsuit filed by two trade groups challenging the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule) has entered an order directing the parties to files briefs regarding a compliance date for the 2017 Rule’s payment provisions. The order states that the court requests the additional briefing “concerning what would be the appropriate compliance date if the court were to deny Plaintiffs’ motion for summary judgment and grant Defendants’ motion for summary judgment.”… Continue Reading
This week’s podcast: The CFPB’s Summer 2021 Supervisory Highlights: A close look at deposit, auto servicing, and payday lending issues
By Barbara S. Mishkin on
We discuss the practices found to be unlawful by CFPB examiners in the areas of deposits, auto servicing, and payday lending, identify practical takeaways for avoiding criticism by the “new CFPB,” and share our thoughts on what the findings signal for future scrutiny in these areas by the “new CFPB.”
Ballard Spahr Senior Counsel Alan Kaplinsky hosts the conversation, joined by Chris Willis, Co-Chair of the firm’s Consumer Financial Services Group, and Jason Cover, a partner in the Group.… Continue Reading
CFPB files motion to lift stay of payment provisions in payday loan rule
By Ballard CFS Group on
The CFPB has filed a motion to lift the stay of the compliance date for the payment provisions in its 2017 final payday/auto title/high-rate installment loan rule (2017 Rule).
In May 2018, the Texas federal district court hearing the lawsuit filed by two trade groups challenging the 2017 Rule entered an order staying the lawsuit. … Continue Reading
Federal district court concludes FCRA does not require consumer reporting agencies to verify legitimacy of end users’ businesses
By Ballard CFS Group on
A Florida federal district court has dismissed a lawsuit filed by a borrower alleging FCRA violations by Clarity Services, Inc. (Clarity), the consumer reporting agency that provided the borrower’s consumer report to her lender. In dismissing the plaintiff’s FCRA claims, the district court rejected the plaintiff’s argument that the FCRA requires a consumer reporting agency, before providing a consumer report, to verify the legitimacy of the business of the report’s end user.… Continue Reading
Plaintiff in lawsuit challenging CFPB’s rescission of ability-to-repay provisions of 2017 payday loan rule files opposition to CFPB and CFSA motions to dismiss; CFPB and CFSA file replies
By Ballard CFS Group on
The National Association for Latino Community Asset Builders (NALCAB) has filed its combined opposition to the motions of the CFPB and the Consumer Financial Services Association (CFSA) to dismiss NALCAB’s lawsuit challenging the CFPB’s rescission of the “ability-to-repay” (ATR) or “mandatory underwriting provisions” in its 2017 final payday/auto title/high-rate installment loan rule (2017 Rule). … Continue Reading
CFPB Issues Report on Consumer Use of Alternative Financial Services
By Jennifer E. Aguilar on
As part of its Making Ends Meet survey, the CFPB issued a report last week on how consumers use payday, auto title, and pawn loans (“alternative financial services” or “AFS”) and the other sources of credit available to them. Consumers surveyed include only those with a traditional credit record and the sampling focused on consumers with lower credit scores, recent credit delinquencies, or living in rural areas.… Continue Reading