Court denies motion for reconsideration filed by plaintiffs in industry lawsuit challenging CFPB payday loan rule
A Texas federal court has denied the motion for reconsideration filed by the trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule). The motion asked the court to reconsider its June 12 order granting the stay of the trade groups’ lawsuit challenging the Payday Rule that the trade groups had sought in motion filed jointly with the CFPB but denying the stay of the Payday Rule’s August 19, 2019 compliance date that was also requested in the joint motion.
In light of the court’s denial of the reconsideration motion, we hope that the CFPB will move quickly to issue a proposal to delay the compliance date pursuant to the Administrative Procedure Act’s notice-and-comment procedures. The CFPB has already set forth the rationale for a delay of the compliance date in its response in support of the motion for reconsideration. As a result, it should be able to issue a proposal expeditiously providing for a delay to give the Bureau additional time to revisit the Payday Rule and engage in substantive rulemaking, currently anticipated for February 2019 (according to the CFPB’s latest rulemaking agenda).