A new joint status report was filed on Friday April 24, 2020 with the Texas federal district court hearing the lawsuit filed by two trade groups challenging the Consumer Financial Protection Bureau’s(CFPB) final Payday, Vehicle Title, and Certain High-Cost Installment Loans rule (Payday Rule).
The report notes that the CFPB “is continuing to make progress” on its proposed rulemaking to rescind the Payday Rule’s ability-to-repay (ATR) provisions and references the CFPB’s statement in its Fall 2019 rulemaking agenda that it expected to take final action on the proposal in April 2020 (No evidence of action as of May 1, 2020.). The report also states that “the parties are not requesting that the Court lift the stay of the litigation or lift the stay of the compliance date at this time.”
The court’s most recent order continuing the stay of the lawsuit and the August 19, 2019 compliance date for both the Payday Rule’s and its payment provisions was entered on December 6, 2019. That order directed the parties to file another joint status report by April 24, 2020 “informing the court about proceedings related to the Rule and this litigation as the parties deem appropriate.” We expect the court to soon enter a new order continuing the stays.
The court first entered orders staying the lawsuit and the compliance date in, respectively, June 2018 and November 2018. Although the CFPB’s final rule delaying the compliance date for the ATR provisions left unchanged the August 19, 2019 compliance date for the Payday Rule’s payment provisions, the court’s November 2018 order stayed the compliance date for both the ATR and the payment provisions.
