The CFPB has issued highly-anticipated proposed revisions to its final payday/auto title/high-rate installment loan rule (Rule) that would rescind the Rule’s ability-to-repay provisions in their entirety (which the CFPB refers to as the “Mandatory Underwriting Provisions”). The Bureau will take comments on the proposal for 90 days after its publication in the Federal Register.
payday lending
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…
Plaintiffs in industry lawsuit challenging CFPB payday loan rule move for reconsideration
By Jeremy T. Rosenblum & Alan S. Kaplinsky on
Posted in CFPB Monitor, Payday Lending
We have previously blogged about the industry challenge to the CFPB’s rule on payday/vehicle title/high rate installment loans. The Plaintiffs’ have now filed an Unopposed Motion for Reconsideration and have advised that the CFPB intends to file a separate supporting memorandum. In their Motion for Reconsideration, the Plaintiffs’ argue that a combined stay of…
Preliminary thoughts on the new CFPB payday loan rule
By Jeremy T. Rosenblum on
Posted in CFPB Monitor, Payday Lending
It will take a while to digest the CFPB’s nearly 1,700-page release on payday, title and high-rate installment lending but, naturally, I have a number of preliminary observations:
- It remains highly uncertain that the Rule will ever go into effect. Once Director Cordray leaves office, his successor may have very different views on the costs
…
The CFPB Settles Litigation and Enforcement Action with Lead Aggregator, Zero Parallel, and its CEO
On September 5, 2017, the CFPB entered into a consent order with Zero Parallel, LLC (“Zero Parallel”), an online lead aggregator based in Glendale, California. At the same time, it submitted a proposed order in the U.S. District Court for the Central District of California, where it is litigating with Zero Parallel’s CEO, Davit Gasparyan.…
Ninth Circuit affirms tribal lenders subject to CFPB investigative demands
By Brian Slagle on
The Ninth Circuit recently issued its opinion in CFPB v. Great Plains Lending, LLC, et al., in which three tribal-affiliated, for-profit lending companies (“Tribal Lenders”) challenged the authority of the CFPB to issue civil investigative demands (CIDs) against Native American tribes.
In 2012, the CFPB issued CIDs against the Tribal Lenders regarding their advertising,…
CFPB issues request for information and report in conjunction with release of proposed payday/auto title/high-rate installment loan rule
By Jeremy C. Sairsingh on
In addition to the proposed payday loan rule released yesterday, the CFPB has issued (1) a “Request for Information on Payday Loans, Vehicle Title Loans, Installment Loans, and Open-End Lines of Credit,” and (2) a report titled “Supplemental findings on payday, payday installment, and vehicle title loans, and deposit advance products.”…
NY Fed blog post calls into question objections to payday loans and rollover limits
By Barbara S. Mishkin on
Posted in Payday Lending
A blog post about payday lending, “Reframing the Debate about Payday Lending,” posted on the New York Fed’s website takes issue with several “elements of the payday lending critique” and argues that more research is needed before “wholesale reforms” are implemented. The authors are Robert DeYoung, Ronald J. Mann, Donald P. Morgan, and Michael R.…
CFPB holds hearing on payday and auto title loans in Richmond, VA
On March 26, the CFPB held a public hearing on payday and auto title lending, the same day that it released proposed regulations for short-term small-dollar loans. Virginia Attorney General, Mark Herring gave opening remarks, during which he asserted that Virginia is perceived as the “predatory lending capital of the East Coast,” suggesting that payday…