Payday Lending

After more than three years since originally filed, the case against the Consumer Financial Protection Bureau regarding its 2017 payday lending rule has ended in the U.S. District Court for the Western District of Texas.

U.S. District Judge Lee Yeakel issued an order finding in favor of the bureau, but not without giving some leeway to the plaintiff associations.

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The Consumer Financial Protection Bureau issued a notice of proposed rulemaking to delay the effective date of two debt collection rules passed late 2020. The rules are set to take effect Nov. 30, 2021.

The proposed delay is meant to give affected parties more time to comply in light of the ongoing COVID-19 pandemic.

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Another lawsuit has been filed concerning the Consumer Financial Protection Bureau’s (CFPB) payday loan rule.

The complaint challenges the 2020 repeal of the underwriting provision of the rule and alleges the CFPB relied on “arbitrarily truncated analysis” and executed the repeal without observance of the rulemaking procedure required by the Administrative Procedures Act.

To learn more about the plaintiff’s argument, read on. Read on »

The Consumer Financial Protection Bureau filed a lawsuit against Driver Loan, LLC, and its CEO for allegedly engaging in deceptive acts or practices.

According to the complaint, the company allegedly made misrepresentations about the APR for its small dollar loans and made misleading statements to depositors in its program called the “DriverLoan Investors Club”.

For more details on the lawsuit, read on. Read on »

In its response to Community Financial Services Association of America and a Texas trade group’s suit alleging the payday loan rule is illegal, the Consumer Financial Protection Bureau stated the rule was valid because Director Kathy Kraninger ratified it.

Plaintiffs and defendant have filed motions for summary judgment with the federal court in the Western District of Texas.

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The Consumer Financial Services Association of America and a Texas trade group are asking a federal judge to invalidate the Consumer Financial Protection Bureau’s payday loan rule, citing a recent U.S. Supreme Court case, the Administrative Procedures Act, and other precedents.

The payday loan rule has been controversial since its enactment in 2017.

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The Consumer Financial Protection Bureau released a new set of frequently asked questions regarding its recently finalized small-dollar lending rule.

Among the questions addressed is what qualifies as a “business day” in regards to the rule.

Read on for more details from the bureau’s guidance.

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The Consumer Financial Protection Bureau has finalized as proposed its amendments to the 2017 small-dollar lending rule, rescinding the ability to repay provisions of the original rule and all the determinations that went along with it.

The bureau declined, however, to abandon the payments provisions of the original rule, and Director Kathy Kraninger ratified those measures in finalizing the rule.

Read on for details from the new rule as well as industry reaction.

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A payday lender accused of overcharging customers when it amortized payments for consumers has settled with the Consumer Financial Protection Bureau.

The bureau announced it would collect $2 million of the more than $3.5 million of overcharges to 4,129 consumers over a four-year period.

Read on for details of the bureau’s enforcement action.

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Looking to provide a path forward for lenders considering small-dollar products to offer consumers, federal financial regulators recently issued principles for conducting small-dollar lending.

The principles were released by the Federal Deposit Insurance Corp., the Federal Reserve, the National Credit Union Administration and the Office of the Comptroller of the Currency.

Read on for details from the agencies’ statement and principles.

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