5th Circuit will delay compliance with the payday loan until after the appeal has been resolved
On October 14, the U.S. Fifth District Court of Appeals stayed Implementing the payment terms of the 2017 CFPB Final Rule on “Payday, Vehicle Title and Certain High Priced Installment Loans” (Rule 2017) for 286 days after the appeal is settled. The appeals court order is in contrast to an order from the U.S. District Court for the western borough of Texas, which last month denied a motion by the trade group’s two plaintiffs to suspend the compliance date pending appeal (backed by InfoBytes here). The district court previously confirmed the payment terms of the 2017 rule (covered by InfoBytes here), which stated that the Bureau’s ratification “was valid and removed the constitutional damage caused by an improperly appointed official approving the rule in 2017,” and that the payment terms were not arbitrary and arbitrary. The suspension decision of the regional court granted the plaintiffs’ motion to suspend the settlement date set for August 19, 2019 until 286 days after the final judgment. The resolution of the 5th district, however, allows the trade groups’ request to extend the suspension of the fulfillment date to 286 days after the appeal has been settled.