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Lender Trade Groups’ Bid to Delay CFPB Payday Rule Rejected

Oct. 1, 2021, 3:32 PM

Payday lenders lost a bid to delay a Consumer Financial Protection Bureau rule limiting their access to customers’ bank accounts to collect payments.

Judge Lee Yeakel of the U.S. District Court for the Western District of Texas on Sept. 30 rejected a request by the Community Financial Services Association of America and a Texas-based trade group to stay the implementation of the CFPB rule while they appeal an earlier decision allowing it to take effect.

The rule bars payday and vehicle title lenders from accessing a consumer’s bank account after two failed attempts to collect on the short-term, high-cost loans, ...