Judge Allows Payday Lenders to Press Lawsuit Against Regulators

A federal judge in Washington said a group of payday lenders may press ahead with a lawsuit that says federal bank regulators are trying to cut them off from the banking industry (Advance Am. v. FDIC, D.D.C., 14-cv-00953, 7/5/17).

The suit before Judge Gladys Kessler of the U.S. District Court for the District of Columbia, filed in 2014, claimed the Federal Deposit Insurance Corp., the Federal Reserve, and the Office of the Comptroller of the Currency joined Operation Choke Point, said to be a Justice Department effort to force banks to end business relationships with payday lenders.

Although ...