Texas Federal Court Lifts Stay of Legal Action Challenge CFPB Payday Loan Rule, Sets Briefing Schedule | Ballard Spahr srl
Texas Federal District Court heard lawsuit from two business groups challenging CFPB’s 2017 last pay / auto title / high rate installment loan rule (2017 rule) issued an order lifting the stay of proceedings, initially seized in June 2018 in the wake of the request for preliminary injunction of the professional associations and before the response of the CFPB to the request or the response to the complaint in the case.
In addition to lifting the stay of the action by the court (but not the separate stay of the implementation of the 2017 rule), the order also sets a timeline for professional groups to file, and the CFPB to respond. , an amended complaint and for the parties to file and brief counterclaims for summary judgment. Since the CFPB has repealed the mandatory underwriting provisions of the 2017 Rule, the ongoing litigation will focus on the payment provisions of the 2017 Rule, which were not changed by the CFPB in its recent regulations.
Under the order, the final summary judgment brief is expected on December 18, 2020. Until then – and unless and until the court decides on the summary judgment motions in favor of the CFPB – we believe that ‘It is highly unlikely that the court will take action to lift its suspension of the 2017 Rule.