As we wrote in our blog post dated June 2, 2018, the lawsuit against the federal Bureau of Consumer Financial Protection (BCFP) brought by 2 payday loans associations has been put on hold. In their joint motion to stay the litigation, the government has confirmed that new payday loan rules are coming as soon as February 2019. Since the BCFP will be changing the payday loan rules this lawsuit could be considered moot.
Bloomberg Law spoke with Jeremy Rosenblum, attorney for the plaintiffs and he said, “Rather than mandating that (payday) lenders determine whether borrowers have the ability to repay their loans or putting restrictions on repeat borrowing, the CFPB (sic) could opt for a disclosure-based regimen.” For more information, please read this article: https://www.bna.com/cfpb-payday-lenders-n73014476180/
Once the BCFP has released the new payday loan rules, they will not take effect until 445 days after the date the rule is released. Stay tuned for more developments.