5th Circuit Delays Payday Loan Compliance Until Appeal Resolution
On October 14, the United States Court of Appeals for the Fifth Circuit suspended the implementation of the payment provisions of the 2017 CFPB Final Rule covering “payday loans, vehicle title and certain loans. high-cost installment ”(rule of 2017) for 286 days after the appeal is resolved. The appeals court order contrasts with an order made last month by the U.S. District Court for the Western District of Texas, which dismissed a request by the trade group’s two appellants to stay the compliance date pending the call (covered by InfoBytes here). The district court previously upheld the payment provisions of the 2017 rule (covered by InfoBytes here), ruling that the Bureau’s ratification “was valid and healed the constitutional prejudice caused by the approval of the 2017 rule by a wrongly appointed official ”, and that the payment arrangements were not arbitrary and capricious. The district court’s stay order granted the plaintiffs’ request to suspend the compliance date, which had been set for August 19, 2019, until 286 days after the final judgment. The 5th Circuit order, however, grants the trade groups motion to extend the suspension of the compliance date until 286 days after the appeal is resolved.