Consumer advocates ask judge: Reject CFPB’s request for payday loan rule delay

On the other hand, four consumer groups have supported strict rules governing the industry

Four consumer groups are asking a federal judge to deny a request by the CFPB and a payday lending group to place a strict short-term loan rule on hold.

Public Citizen, Americans for Financial Reform Education Fund, the Center for Responsible Lending, and the National Consumer Law Center accuse the agency and the trade group of trying to end run federal laws governing how rules are supposed to be issued.

The CFPB and the Community Financial Services Association of America have asked that that the effective date of the payday lending rule be delayed until a new rule is issued or the lawsuit challenging the rule is resolved. And the groups asked that all proceedings in the lawsuit be placed on hold. In addition, they ask that if the lawsuit is revived in the future, implementation of the payday loan rule be delayed until 445 days after the final ruling.

The financial services trade group filed the suit challenging the strict payday lending rules that were issued by former CFPB Director Richard Cordray. When Cordray resigned, President Trump appointed Office of Management and Budget Director Mick Mulvaney as acting director.

 

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