CFPB Could Be Prepped for Wrong Payday Fight

Lenders unhappy about the Consumer Financial Protection Bureau’s watered down payday lending rule could prove a bigger threat to the agency’s plans than consumer groups and state attorneys general.

Democratic state attorneys general and consumer groups have long discussed potential lawsuits if the original 2017 payday lending regulation is weakened, but are likely to have difficulty proving they have standing to sue.

The CFPB may actually be more vulnerable to a challenge from the payday industry, which is displeased with the CFPB’s proposal to keep intact restrictions on access to consumers’ bank accounts. Lenders may have both the incentive and ...