WASHINGTON, D.C. – The Center for Responsible Lending (CRL) applauds a federal court ruling out of Texas, which rejected a Joint Motion by the Consumer Financial Protection Bureau (CFPB) and the payday lenders that was intended to delay the compliance date for the CFPB’s Payday Rule. The CFPB is currently led by Mick Mulvaney, who was unlawfully installed as “Acting Director” by President Trump.
Center for Responsible Lending (CRL) Litigation Counsel Will Corbett issued the following statement:
Mick Mulvaney and the payday lenders tried an end-run around the law and it was rightly rejected. Today’s ruling is a win for consumers.
Under its previous director, the CFPB conducted research, analysis, and public outreach for more than five years in developing a rule to stop payday loans from trapping consumers in debt.
In scheming to stop the rule from going into effect, Mulvaney and the payday lenders tried to ignore the legal requirements that federal agencies must follow.
CFPB leadership should implement the Payday Rule as written and get back to protecting consumers.
Links to background materials:
- Today’s ruling
- Amicus brief filed by consumer groups
- A timeline of the CFPB’s development of the Payday Rule
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at matthew.kravitz@responsiblelending.org or 202-349-1859.