The CFPB has filed its combined cross-motion for summary judgment and opposition to the plaintiffs’ motion for summary judgment in the lawsuit filed by industry trade groups challenging the CFPB’s final rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule). The combined motion and opposition follows the filing of an Amended Complaint by the trade groups focused on the Rule’s payments provisions, the filing of an Answer to the Amended Complaint by the CFPB, and the filing of a motion for summary judgment by the trade groups.… Continue Reading
Payday Lending
Trade groups file summary judgment motion in Texas lawsuit challenging CFPB payday loan rule
The industry trade groups challenging the CFPB’s final rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule) have filed a motion for summary judgment. The motion follows the filing of an Amended Complaint by the trade groups focused on the Rule’s payments provisions and the filing of an Answer to the Amended Complaint by the CFPB.… Continue Reading
This week’s podcast: CFPB exam findings related to short-term small-dollar lending in Summer 2020 Supervisory HIghlights
We review the CFPB’s findings that lenders engaged in deceptive practices and violated Regulation Z advertising requirements based on the following conduct and discuss the findings’ compliance implications: false representations about consumers’ ability to apply for loans online and the absence of credit checks; false threats in collection letters about lien placement, asset seizure, and charging late fees; and advertising “free loans” without including the additional information required when using a “triggering term” or where the loan was free only if prepaid.… Continue Reading
CFPB Summer 2020 Supervisory Highlights looks at consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending
The CFPB has released the Summer 2020 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending that were completed between September 2019 and December 2019.
Key findings are described below.
Consumer reporting. … Continue Reading
Trade groups file amended complaint in Texas lawsuit challenging CFPB payday loan rule
On August 28, 2020, the industry trade groups challenging the CFPB’s final Rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule) filed their Amended Complaint in accordance with the briefing schedule recently entered by the court. The Amended Complaint focuses on the payment provisions of the Rule but the trade groups have expressly reserved the right to renew their challenges to the underwriting provisions of the Rule in the event the Bureau’s revocation of those provisions is set aside for any reason, including legislative, executive, administrative or judicial action.… Continue Reading
This week’s podcast: The CFPB’s payday/auto title/high-rate installment loan rule: a look at the uncertain road ahead
After we recap the 2017 final rule and its implications for industry, we discuss the CFPB’s actions to eliminate its ability-to-repay provisions but keep its payment provisions, possible use of the Congressional Review Act to restore the entire 2017 rule, status of the Texas litigation challenging the 2017 rule, potential impact of the 2020 presidential election, and our thoughts on preparing for the advent of the payment provisions.… Continue Reading
CFPB and trade groups ask Texas federal court to lift stay of lawsuit challenging payday loan rule but disagree over next steps
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 a joint motion asking the Texas federal district court hearing the trade groups’ lawsuit to lift the stay of the lawsuit, originally entered in June 2018 on the heels of the trade group’s motion for a preliminary injunction and before the CFPB’s response to the motion or answer to the complaint in the case.… Continue Reading
Update on recent non-COVID-19-related consumer financial services legal developments
The topics we discuss are: implications of the SCOTUS Seila Law decision on CFPB rules, past consent orders, ongoing enforcement, and the Texas lawsuit challenging the CFPB payday loan rule; DOJ/FTC auto dealer fair lending actions, status of disparate impact, and Google targeted advertising changes; the CFPB’s new advisory opinion program; timing of CFPB debt collection final rule; and OCC/FDIC final rules to undo Madden and plans to address “true lender.”… Continue Reading
CFPB issues final rule rescinding payday loan rule ability to repay provisions and ratifies rule’s payments provisions
The CFPB has issued its long-awaited final rule rescinding the ability-to-repay provisions in its final payday/auto title/high-rate installment loan rule (Payday Rule). The final rule will be effective 90 days after its publication in the Federal Register.
The CFPB also issued a document in which it affirmed and ratified the Payday Rule’s payments provisions. … Continue Reading
Supreme Court invalidates DHS Rescission of DACA Program: Implications for Payday Lenders
In an opinion authored by Chief Justice Roberts (the “DACA Opinion”), the Supreme Court has concluded that the rescission of the DACA program by the U.S. Department of Homeland Security (DHS) was arbitrary and capricious and hence in violation of the Administrative Procedure Act (APA). Several clients have asked whether the decision bodes ill for the CFPB’s anticipated rescission of the mandatory underwriting (that is, ability to repay) provisions of its payday lending rule.… Continue Reading