Fifth Circuit Accepts Trade Groups’ Motion to Extend Compliance Date for Suspension of Payments Provisions | Ballard Spahr srl


The fifth circuit entered an order maintaining the compliance date of payment arrangements in the CFPB’s 2017 last payday rule / automatic title / high rate installment loan (2017 rule) until 286 days after resolution of the appeal of professional groups.

The professional groups appealed against the final judgment of the district court granting the CFPB’s motion for summary judgment and suspending the date for bringing the payment arrangements into conformity until 286 days after August 31, 2021 (the date of which is June 13, 2022). After the tribunal de grande instance refused their request to stay From the date of compliance until 286 days after the full and final resolution of their appeal, the trade groups filed a petition with the Fifth Circuit for the same relief.

The main argument of trade groups is that the 2017 rule was void ab initio because the APFC’s unconstitutional dismissal restriction means that the Bureau did not have the power to enact the 2017 rule. Opposing requests from professional groups to extend the suspension in the District Court and the Fifth circuit, the CFPB asserted that professional groups had not established that they were likely to succeed on the merits of this argument because the United States Supreme Court held in Collins that the agency’s actions are not overturned by the mere existence of an invalid travel restriction, and many appellate courts have rejected similar arguments.

The district court, in its order dismissing the trade groups’ petition to extend the stay, said it had considered the four relevant factors when the courts considered a stay request pending resolution of the stay. ‘appeal and concluded that the trade groups had failed to demonstrate sufficient to warrant a suspension. These factors include a strong demonstration of probable success on the merits. He also found that the actions were not in favor of extending the suspension of the compliance date beyond the court’s 286-day suspension from August 30, 2021. The Fifth Circuit did not give no reason for its decision to extend the suspension as requested by the trade groups.


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