The district court lifts the suspension of the dispute challenging the payday rule of the CFPB
On August 20, the United States District Court for the Western District of Texas granted a joint motion to lift the stay of litigation in a lawsuit brought by two payday loan business groups ( applicants) challenging the 2017 CFPB Final Rule Regarding Payday Loans, Vehicle Title Loans, and Certain Other Installment Loans (Rule). As previously covered by InfoBytes, in 2018, plaintiffs filed a lawsuit asking the court to overturn the rule, claiming that the regulations of the Office did not comply with the Administrative Procedure Act and that the structure of the Office was unconstitutional. . The parties filed their joint motion to lift the suspension last month following several recent developments, including the U.S. Supreme Court ruling in Seila Law LLC v. CFPB, who ruled that the clause which required a reason for dismissing the CFPB director was unconstitutional but severable from the law establishing the Bureau (covered by a special Buckley alert). In light of the court ruling, the Bureau ratified the rule’s payment provisions and issued a final rule repealing the rule’s underwriting provisions (covered by InfoBytes here). Litigation will focus on the payment provisions of the Rule, with the Bureau noting in the joint motion that it intends to “promptly file[e] a motion to lift the suspension of the compliance date of the payment provisions of the 2017 Rule. ”The order outlines the schedule of briefings for the parties, the briefing on the summary judgment to be be completed by December 18.