Payday Lending

With the deadline to repeal the Consumer Financial Protection Bureau’s (CFPB) payday lending rule now in the rearview mirror, covered parties may feel inclined to review plans for compliance with the controversial regulation. However, as the rule’s future remains far from certain, many financial industry participants may understandably take more of a wait-and-see approach.

The fact that the payday repeal resolution was not passed comes as little surprise to many industry insiders, such as Consumer Bankers Association (CBA) Associate General Counsel and Vice President David Pommerehn, who spoke with Dodd Frank Update about the matter.

Find out more about what likely lies ahead for the rule, and the potential implications for the financial industry.

As the days tick by, the Senate’s window to repeal the Consumer Financial Protection Bureau’s rule restricting the payday lending industry has all but shut.

Although several Republicans oppose the rule and more than a month has passed since Sen. Lindsey Graham (R-S.C.) introduced a resolution to nullify its effects via the Congressional Review Act, industry insiders, such as Ballard Spahr Partner Alan Kaplinsky, have speculated as to a number of reasons why legislators will not act further to stop the rule’s implementation at this time.

Find out what reasons the Senate may have for not voting on Graham’s resolution, and what their inaction could mean for the rule’s future.

Responding to Mick Mulvaney’s recent comment about having given preferential treatment to lobbyists who contributed to his political campaigns as a member of Congress, House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) asked him to disclose any records of his interactions with lobbyists since becoming interim director of the Consumer Financial Protection Bureau.

Mulvaney sparked controversy when he told attendees at an American Bankers Association conference that as part of the “hierarchy” in his office when he was a representative for South Carolina he would only consider meeting with lobbyists who had helped fund his campaigns.

Find out specifically what Waters is asking Mulvaney to disclose. 

A comment that seemingly was innocuous in Mick Mulvaney’s view has caused controversy and even spurred a call for his resignation as acting director of the Consumer Financial Protection Bureau (CFPB).

The comment, intended to highlight his appreciation for his constituents and businesses most affected by government policy, included an admission to giving preferential treatment to lobbyists who contributed to his past political campaigns.

Find out why his comment has deeper implications than he may have realized.

A lawsuit filed against the Consumer Financial Protection Bureau (CFPB) alleges that the bureau’s rule regulating the payday lending industry violates multiple federal statutes and fundamentally misses the point of why consumers seek short-term, small-dollar loan options in the first place.

The complaint, filed by two trade associations representing non-bank lenders specializing in small-dollar loans, asserts previously broached arguments premised on the purported unconstitutionality of the bureau’s structure – a concept which was shot down in a majority ruling by the D.C. Circuit Court of Appeals in January.

Find out specific arguments included in the complaint and what the plaintiffs hope to get out of the lawsuit.

Doubling down on one of four recommendations included in his first semi-annual report to Congress as acting director of the Consumer Financial Protection Bureau (CFPB), Mick Mulvaney emphasized to the House Financial Services Committee that he believes the bureau should be put under congressional appropriations.

Mulvaney also fielded questions regarding the bureau’s recent dismissals of cases against payday lenders, the bureau’s structure, his decision to move the Office of Fair Lending and Equal Opportunity into the director’s office and the bureau’s remittance rule, among other topics.

Find out more details about what was discussed during the House committee hearing.

Data security, payday lending and fiscal conservatism were among the key topics highlighted during Mick Mulvaney’s appearance before the Senate Banking Committee on Thursday to discuss his first semi-annual report to Congress since becoming acting director of the Consumer Financial Protection Bureau.

Mulvaney received praise from Republicans for his efforts to rein in the bureau’s use of its expansive authority granted by the Dodd-Frank Act. Those same efforts were a main subject of criticism from Democrats.  

Find out more details about the hearing, which took place immediately following oral arguments in the case of Leandra English v. Donald Trump.

Sen. Lindsey Graham (R-S.C.) recently introduced a joint resolution of disapproval to nullify the Consumer Financial Protection Bureau’s rule regulating the short-term, small-dollar lending industry. This is the second such resolution introduced since the rule was finalized in October 2017.

To pass the Senate with only a simple majority, a CRA resolution must be acted upon within 60 legislative days of its publication in the Federal Register or of its referral to the Senate committee, depending on which occurs first.

Read on to find out more about the resolution.

Amid growing speculation state attorneys general will become more active enforcing consumer protection laws as the Consumer Financial Protection Bureau shifts resources towards other functions, acting director Mick Mulvaney recently said that the bureau wants to increase collaboration between with state regulators.

Mulvaney talked about what the bureau hopes to get out of such collaborative efforts during speaking engagements before the National Association of Attorneys General and the U.S. Chamber of Commerce.

Find out what details he was able to divulge about the bureau’s new attitude towards enforcement.  

Responding to a letter questioning his motives in re-evaluating the Consumer Financial Protection Bureau’s payday lending rule and withdrawing lawsuits against payday lenders, acting director Mick Mulvaney pushed back against insinuations levied by six Democratic senators, including Sens. Elizabeth Warren (D-Mass.) and Maxine Waters (D-Calif.). Three of the senators then followed up by reiterating questions Mulvaney failed to address from their initial letter.

Mulvaney has exchanged multiple letters with Warren regarding the legitimacy of his status as the bureau’s interim leader and his actions in that capacity.

Find out more about what was said by both parties in this latest war of words.