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#2245105 - 11/04/20 06:31 PM Payday Lending Rule compliance date pymt provis
river girl Offline
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Joined: Nov 2004
Posts: 1,004
With the payment provision of the Payday lending Rule having a compliance date of Nov 19 2020 do we need to be ready to go as soon as the court cases are resolved?
Meaning, would we get some additional time granted or do I need to be ready to implement the day after the court case is decided (if decided to implement as currently written)?

Kind of like looking in a crystal ball but my programmers and ops people don't want to use up valuable resources now when something might change or we get more time.

Thank you.

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Lending Compliance
#2245356 - 11/10/20 04:28 PM Re: Payday Lending Rule compliance date pymt provis river girl
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
Of course we can't know when the court case will be resolved. The plaintiffs have filed a brief asking for summary judgment invalidating the regulation based on their arguments (some of which are pretty questionable). They want the CFPB to start over with a new proposal. The CFPB has filed a brief asking for summary judgment in its favor, arguing against each of the plaintiff's claims.

And the court has issued a scheduling order for next events: the trade groups must file their reply in support of their motion for summary judgment and opposition to the Bureau’s cross-motion for summary judgment by November 20. The Bureau must file its reply in support of its cross-motion by December 18.

So nothing is going to happen before December 18 and probably not before the end of the year.

As a result, you can be assured the Bureau will have to address the compliance date and delay it to a future date. When that might be (assuming the Bureau wins the court case) is anyone's guess.

Oh, there's one other fly in the ointment -- a suit has been filed on behalf of a consumer group arguing that the Bureau's rescission of the ATP requirements of the rule was arbitrary and failed to take consumer comments into account, etc., etc.
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#2248128 - 01/25/21 08:37 PM Re: Payday Lending Rule compliance date pymt provis river girl
Snowgirl Offline
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Joined: Sep 2003
Posts: 709
Did anything happen on this yet? Very confused on this whole regulation.

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#2248130 - 01/25/21 08:43 PM Re: Payday Lending Rule compliance date pymt provis river girl
Snowgirl Offline
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Joined: Sep 2003
Posts: 709
If we only originated 134 consumer loans in the last year, are we exempt from the entire rule?

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#2248236 - 01/27/21 03:41 PM Re: Payday Lending Rule compliance date pymt provis river girl
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
The effective date of the regulation is still stayed by the court case in Texas. If you only made 134 consumer loans last year, you are most likely exempt.

With the change in leadership at the CFPB, we can't be certain what course the Bureau will take. Remember that it's being sued on behalf of a consumer group to reinstate the ability to pay (underwriting) portions of the rule that the Bureau rescinded.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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