On November 15, 2018, in response to a November 7, 2018 letter from Republican Senators, FDIC Chairman Jelena McWilliams announced that the FDIC has engaged outside counsel to investigate the Obama-era Operation Choke Point, under which the FDIC and other government agencies pressured banks not to do business with payday lenders. In her letter,
Payday Lending
Republican Senators seek action from FDIC to ensure end of Operation Choke Point
By Barbara S. Mishkin on
Thirteen Republican Senators have sent a letter to FDIC Chairman Jelena McWilliams urging the FDIC to take action to ensure that lawful businesses are no longer at risk of adverse financial consequences as a result of “Operation Choke Point, and its associated culture and Choke Point-like regulatory actions.”
“Operation Choke Point” was a federal enforcement…
This week’s podcast: update on the CFPB’s small dollar lending rule
By Barbara S. Mishkin on
Posted in CFPB Rulemaking, Payday Lending
With the August 19, 2019 compliance date for the CFPB’s small dollar lending rule drawing nearer, industry anxiety is growing as to the CFPB’s plans for delaying the compliance date and what changes will be proposed. In this episode, we review what the rule’s ability to pay and repayment provisions would require and why those…
Colorado passes 36% payday loan rate cap
By Alan S. Kaplinsky on
Posted in Payday Lending, State CFS Monitor
By an overwhelming vote (approximately 1,4270,000 million to 433,000), Colorado voters passed Proposition 111, a ballot initiative that places a 36 percent APR cap on payday loans. The question presented to voters was:
Shall there be an amendment to the Colorado Revised Statutes concerning limitations on payday lenders, and, in connection therewith, reducing allowable charges …
Court stays CFPB payday loan rule compliance date
By Jeremy T. Rosenblum on
Yesterday, the court reversed course in the lawsuit filed by two industry trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule). On its own initiative, the Texas federal district court granted a stay of the Payday Rule’s August 19, 2019 compliance date and continued in force its stay of the lawsuit. …
CFPB issues statement regarding plans to reconsider payday loan rule
By Jeremy T. Rosenblum on
Earlier today, the Bureau of Consumer Financial Protection released a Public Statement Regarding Payday Rule Reconsideration and Delay of Compliance Date. Echoing rumors that have been circulating in the industry for several weeks (which we had agreed not to address in our blog), the Statement reads in full as follows:
The Bureau expects to …
Regulation by Enforcement is Dead
By Richard J. Andreano, Jr. on
Addressing the Mortgage Bankers Association (MBA) 2018 Annual Convention in Washington, DC on October 15, 2018, BCFP Acting Director Mick Mulvaney advised that regulation by enforcement is dead, and that he does not care much for regulation by guidance either. He noted to the members that they have a right to know what the law…
Baptist Church Seeks to Intervene In CFPB Payday Rule Lawsuit
By Jenny N. Perkins on
Posted in CFPB Monitor, Payday Lending
On September 19, 2018, the Georgia based Cooperative Baptist Fellowship (the “Fellowship”) filed a motion to intervene as a defendant in a case filed by the Community Financial Services Association of America Ltd. and the Consumer Service Alliance of Texas challenging the CFPB’s Payday Rule. The lawsuit was filed in April 2018 claiming, among other…
CFPB seeks extension to respond to trade groups’ preliminary injunction motion in lawsuit challenging payday loan rule
By Alan S. Kaplinsky on
Posted in CFPB Monitor, Payday Lending
The CFPB is asking the Texas federal district court to give it a 45-day extension to respond to the preliminary injunction motion filed by two trade groups in their lawsuit challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule). The motion seeks a preliminary injunction to block the CFPB from enforcing the Payday…
Trade groups challenging CFPB’s payday loan rule file preliminary injunction motion
By Alan S. Kaplinsky on
Posted in CFPB Monitor, Payday Lending
The two trade groups that unsuccessfully attempted to obtain a stay of the August 19, 2019 compliance date for the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) have now filed a Motion for Preliminary Injunction to enjoin the CFPB from enforcing the Payday Rule. While the Texas federal district court had denied a …