CFPB Payday Lending Rule to Take Effect After Supreme Court Win

The Consumer Financial Protection Bureau’s bitterly contested payday lending rule is set to take effect next year after a federal appeals court declined to reopen an industry challenge that included a trip to the US Supreme Court.

The US Court of Appeals for the Fifth Circuit ruled in October 2022 that the CFPB had followed all necessary procedures allowing its watered-down payday lending rule to take effect. The panel put the rule on hold, however, finding that the agency’s funding through the Federal Reserve, and outside the congressional appropriations process, was unconstitutional.

But the Supreme Court overturned the Fifth Circuit’s ...