On October 26, 2018, the CFPB issued a statement regarding their planned payday rule. Specifically, the CFPB explained that they expect to issue proposed rules in early 2019 that will reconsider the Payday, Vehicle Title, and Certain High-Cost Installment Loans rule. They also plan to address the rule’s compliance date in this 2019 issuance. In their statement, the CFPB explained that they will make final decisions regarding the scope of the proposal closer to the issuance of the proposed rules. They also said, however, that the CFPB is currently planning to propose revisiting only the ability-to-repay provisions and not the payments provisions, in significant part because the ability-to-repay provisions have much greater consequences for both consumers and industry than the payment provisions. They expect to publish the proposals as quickly as practicable in order to comply with the Administrative Procedure Act and other applicable laws.
In related news, the Texas Federal District Court on November 6, 2018 granted a stay delaying the August 19, 2019 compliance date for the Payday Rule.
The full CFPB statement can be found here.
A copy of the court ruling can be found here.
