Community Financial Services Association of America challenges CFPB rule on payday lending
Clients Community Financial Services Association of America (CFSA)
Jones Day is representing the Community Financial Services Association of America in a federal lawsuit seeking to set aside the 2017 Consumer Financial Protection Bureau (CFPB) rule concerning payday, vehicle title, and certain high-cost installment loans. The rule, which is scheduled to go into effect in 2019, would ban most payday loans, even though such loans provide a financial lifeline for millions of cash-strapped consumers. The lawsuit contends that the rule is arbitrary and capricious under the Administrative Procedure Act; that the rule conflicts with the consumer-protection provisions of the Dodd-Frank Act; and that the rule is unconstitutional because statutory restrictions on the President’s ability to remove the CFPB’s director violate the separation of powers.
Community Financial Services Association of America, Ltd. et al. v. Consumer Financial Protection Bureau et al., No. 1:18-cv-295 (W.D. Tex.)