Proponents of the Payday Loan Interest Rate Cap ballot initiative in Michigan met the June 1, 2022 deadline to appear on the November 2022 ballot in the state. If not picked up by the state legislature this summer, the proposal would ask voters to approve a state statute capping payday loan interest rates, that can currently reach over 370% APR, at no more than 36% APR.… Continue Reading
payday loan
En banc Fifth Circuit rules CFPB enforcement action can proceed against All American Check Cashing but concurring opinion creates potential for further constitutional challenge based on CFPB’s funding mechanism
By Michael Gordon on
Posted in CFPB, Regulatory and Enforcement
The en banc U.S. Court of Appeals for the Fifth Circuit has ruled that the CFPB’s enforcement action against All American Check Cashing can proceed despite the unconstitutionality of the CFPB’s single-director-removable-only-for-cause-structure at the time the enforcement action was filed. However, in a concurring opinion, five judges expressed their agreement with All American’s argument that the unconstitutionality of the CFPB’s funding mechanism requires dismissal of the enforcement action.… Continue Reading
D.C. federal court dismisses NALCAB lawsuit challenging CFPB’s rescission of payday loan rule underwriting provisions
By Ballard CFS Group on
The D.C. federal district court has granted the motions filed by the CFPB and the Consumer Financial Services Association (CFSA) to dismiss the lawsuit brought by the National Association for Latino Community Asset Builders (NALCAB). (The CFSA had intervened in the lawsuit.) In the lawsuit, the NALCAB sought to overturn the CFPB’s July 2020 final rule (2020 Rule) rescinding 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 files brief with Fifth Circuit in trade groups’ challenge to CFPB payday loan rule
By Ballard CFS Group on
The CFPB has filed its brief with the Fifth Circuit in the appeal filed by the trade groups challenging the payment provisions in the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule). The trade groups have appealed from the 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 (which would have been until June 13, 2022). … Continue Reading
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
Trade groups file opposition to CFPB’s motion for summary judgment in Texas lawsuit challenging CFPB payday loan rule
By Alan S. Kaplinsky on
The industry trade groups challenging the CFPB’s final rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule) have filed their combined opposition to the CFPB’s cross-motion for summary judgment and reply to the CFPB’s opposition to the trade groups’ motion for summary judgment. The combined motion 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, the filing of a motion for summary judgment by the trade groups, and the filing of a cross-motion for summary judgment and opposition to the trade groups’ summary judgment motion by the CFPB.… Continue Reading
Trade groups file summary judgment motion in Texas lawsuit challenging CFPB payday loan rule
By Ballard CFS Group on
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
NCUA finalizes rule authorizing new payday loan alternative option
By Alan S. Kaplinsky on
The National Credit Union Administration has published a final rule in the Federal Register that amend the NCUA’s general lending rule to provide federal credit unions (FCU) with a second option for offering “payday alternative loans” (PALs). The final rule is effective December 2, 2019.
In 2010, the NCUA amended its general lending rule to allow FCUs to offer PALs as an alternative to other payday loans. … Continue Reading
Ballard Spahr critiques CFPB payday loan rule’s payment provisions
By Ballard CFS Group on
Last month, Ballard Spahr submitted two letters to the CFPB, critiquing the payment provisions of the CFPB’s final payday/auto title/high-rate installment loan rule (the “Payment Provisions”). Last Friday, the Bureau delayed the implementation date of the rule’s mandatory underwriting provisions by 15 months, to November 19, 2020. However, the Payment Provisions are scheduled to go into effect on August 19, 2019 or the date the current judicial stay of the rule is lifted, whichever comes later.… Continue Reading
CFPB does not seek lifting of stay of compliance date for payday loan rule’s payment provisions in new status report filed in trade groups’ lawsuit
By Ballard CFS Group on
The CFPB and the two industry trade groups that filed a lawsuit in a Texas federal district court challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) filed a new status report with the court on March 8 to follow up on their March 1 status report.
The new status report sets forth the parties’ views on whether the court should continue to stay the lawsuit and the Payday Rule’s August 19, 2019 compliance date. … Continue Reading