By Better Markets
As if it wasn’t enough that new CFPB Director Kathy Kraninger was doing her best to help predatory payday lenders, a federal judge in Texas decided to leave in place a stay on the compliance date of the payday lending rule.
As a result of a ruling by U.S. District Judge Lee Yeakel, payday lenders will be able to continue to attempt to debit payments from a borrower’s bank account.
The reason for his ruling? The CFPB failed to act and file a motion to lift the deadline. In other words, it once again failed to take action to protect consumers from financial predators.
The proposed delay was the subject of a comment letter filed by Better Markets with the CFPB in which we state that the proposal “on its face lacks a sufficiently detailed and persuasive justification for such a significant change” and that it “it rests on the outcome of a related but hopelessly flawed Rescission
Proposal that by its own admission lacks a substantive foundation.” This is a reference to the fact that the CFPB’s decision to reverse the payday lending rule was based on research paid for, supplied by, and drafted by industry, as we wrote about.