District court rejects offer to delay payday loan compliance date pending appeal


On September 30, the U.S. District Court for the Western District of Texas refuse a request by two trade groups to suspend the implementation of the payment provisions of the 2017 CFPB final rule covering “payday loans, vehicle title and certain high cost installment loans” (2017 rule) while they are appealing an earlier decision authorizing the provisions to take effect. As previously covered by InfoBytes, the court upheld the payment provisions of the 2017 rule, ruling that the Bureau’s ratification “was valid and remedied the constitutional prejudice caused by the approval of the 2017 rule by an improperly appointed official.” The tribunal also concluded that the payment arrangements, in law, “are consistent with the statutory authority of the Office and are not arbitrary or capricious”, and that the Office properly considered the costs and benefits of such payment arrangements. . The court order, however, granted the plaintiffs’ request to suspend the compliance date, which had been set for August 19, 2019, until 286 days after the final judgment.

Complainants appealed to the United States Court of Appeals for the Fifth Circuit and asked the district court to stay the execution of the 286-day stay pending appeal, so compliance would only be required 286 days after the appeal was resolved. The court dismissed the request, stating that the plaintiffs “had not provided sufficient evidence to justify a stay pending resolution of the appeal” and that “the actions do not support the extension of the stay from the date of appeal. compliance beyond the 286-day court suspension from August 30, 2021.

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