The Consumer Financial Protection Bureau is ready to take on predatory lending again. After the payday lenders association delayed a rule for years with a lawsuit challenging the regulation as well as the bureau’s constitutionality – a challenge the payday loan industry recently lost before the Supreme Court – the CFPB is bringing payday protections back.
In a June 14 blog post, Zixta Martinez, CFPB’s deputy director, wrote:
“An existing court order pausing the rule is set to expire 286 days after the Supreme Court enters its judgment in the payday lenders’ case, which the Court is expected to do on June 17. As a result, the rule should go into effect on March 30, 2025. Once that happens, the rule’s important and long-delayed protections for borrowers can finally put an end to an unfair and abusive collections practice that has gone on too long.”
