On November 18, the plaintiff trade groups in Community Financial Services Association of America, Ltd.(CFSA) v. Consumer Financial Protection Bureau (CFPB) filed an Opposed Motion for Clarification of Stay Pending Appeal asking the U.S. Court of Appeals for the Fifth Circuit to clarify that its stay of the compliance date for the CFPB’s payday loan rule extends until the time for filing a new petition for certiorari with the Supreme Court has expired or, if the petition is filed, until the Supreme Court finally disposes of the case. At a minimum, the trade groups ask the Fifth Circuit to clarify that its existing stay expires 286 days after the court’s recent issuance of its mandate (that is, August 25, 2025) and not on March 30, 2025.
The petition advises that the trade groups have conferred with the CFPB and that the CFPB continues to maintain that the relevant compliance date is March 30, 2025. As previously noted here and here, we do not believe that the CFPB position is tenable and accordingly believe that the earliest possible mandatory compliance date is August 25, 2025. Once there are further developments, we will report further on this critical issue for the industry.