Stay of Litigation and Compliance Date Continued in Payday Lending Rule LawsuitFollowing the status report filed last week by the parties involved in the lawsuit challenging the CFPB’s Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule, the Texas district court faced with the case ordered that the stay of litigation and the stay of the compliance date for the rule’s payment provisions are continued. The court’s order, which was entered on August 6, requires the parties to “file a Joint Status Report informing the court about proceedings related to the Rule and this litigation as the parties deem appropriate, but no later than Friday, December 6, 2019.” (Emphasis in original)

The parties’ status report informed the court that the CFPB issued a final rule on June 6 delaying the compliance date for the underwriting provisions of the rule until November 19, 2020, and that the bureau continues progressing on its other rulemaking, which proposed to remove the underwriting provision. The order indicates that neither party requested that the court “lift the stay of litigation or the stay of the compliance date at this time.”

With the prior August 19 compliance deadline for the payment provisions looming, this order seems to solidify the delay of the compliance date until potentially as late as December 6.

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Photo of Kelley J. Hails Kelley J. Hails

Kelley Hails focuses her practice on helping banks and other financial institutions with regulatory compliance matters. As part of her regulatory compliance practice, Kelley assists clients in the financial services and mortgage industries as they navigate, implement, and manage compliance with various originating…

Kelley Hails focuses her practice on helping banks and other financial institutions with regulatory compliance matters. As part of her regulatory compliance practice, Kelley assists clients in the financial services and mortgage industries as they navigate, implement, and manage compliance with various originating and servicing obligations imposed on them by federal and state regulators, including the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), TILA-RESPA Integrated Disclosure requirements, Fair Credit Reporting Act (FCRA), Equal Credit Opportunity Act (ECOA), Unfair, Deceptive or Abusive Acts or Practices (UDAAP), and other CFPB and state consumer protection requirements. She regularly advises clients on the application of such laws in connection with day-to-day operations, maintenance or development of policies and procedures, product advertising and development, mock regulatory examination reviews, risk assessments, regulatory examinations, and error correction. Kelley also has experience in a variety of commercial lending transactions.

Kelley is fluent in Spanish and assists clients with matters involving Spanish-language needs.