Judge Orders Stay of BCFP’s Payday Rule Implementation Date

A judge in the U.S. District Court for the Western District of Texas ordered a stay Tuesday of the implementation date of the Bureau of Consumer Financial Protection’s (BCFP) short-term, small-dollar lending rule. The rule is scheduled to go into effect in August 2019, but the bureau said Oct. 26 that it intends to issue a proposed rule in January.

The bureau said the focus of the January proposal will be on the ability-to-repay provisions in the rule, due to their greater impact on consumers and the financial services industry.

CUNA Chief Advocacy Officer Ryan Donovan said he hopes the bureau will consider a full exemption for credit unions from the rule, while continuing to address consumer abuse.

CUNA successfully advocated for major changes in the rule, raising many concerns during the rulemaking process that were addressed by the bureau, a primary goal of CUNA’s Campaign for Common-Sense Regulation.

in Compliance & Regulatory News