CFPB Deputy Director Zixta Martinez recently provided the opening remarks at the CFPB’s Academic Research Council meeting. In her remarks, Martinez emphasized the CFPB’s role as a data-driven agency and welcomed further discussion of state payday extended payment plans and of the inclusion of medical debt in credit reports—two topics that have garnered renewed public
payday lending
Texas federal court requests briefing on compliance date for payment provisions in payday loan rule
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…
This week’s podcast: The CFPB’s Summer 2021 Supervisory Highlights: A close look at deposit, auto servicing, and payday lending issues
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…
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…
House Financial Services Subcommittee Holds Hearing on “Debt Traps”
On April 30, 2019, the House Financial Services Subcommittee held a hearing entitled “Ending the Debt Traps in the Payday and Small Dollar Credit Industry.” (A video of the hearing is available here.)
The tone and tenor of the hearing became readily apparently during opening remarks offered by Representative Gregory Meeks, in which he…
CFPB proposes revisions to final payday/auto title/high-rate installment loan rule; Ballard Spahr to hold February 21 webinar
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. …
Regulation by Enforcement is Dead
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
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
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
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
…