Lenders Lose Bid for 5th Cir. Rehearing on CFPB Payday Rule (1)

A Consumer Financial Protection Bureau rule limiting payday lenders’ ability to tap borrower bank accounts is set to take effect after a federal appeals court declined to review a decision allowing the rule to stand.

The US Court of Appeals for the Fifth Circuit on Tuesday denied a request from payday lenders for the full court to hear an appeal of an October 2022 ruling by a three-judge panel that the CFPB followed all necessary procedural steps in finalizing the rule.

The 2022 decision blocked the CFPB’s rule on the grounds that the agency’s independent funding through the Federal Reserve ...