Overturning the CFPB’s Final Payday Loan Rule by Reopening Rulemaking or CRA Resolution
JD Supra covers developments of the CFPB’s payday loan rule and Daniel Press’ “7 Reasons to Oppose the Federal Payday Loan Rule.”
On December 1, 2018, three Democrat and three Republican members of the House of Representatives introduced a joint resolution under the Congressional Review Act (H.J. Res. 122) to override the CFPB’s final payday/auto title/high-rate installment loan rule. The CRA is the vehicle used by Congress to overturn the CFPB’s arbitration rule in a party-line vote.
In a new blog post entitled “7 Reasons to Oppose the Federal Payday Loan Rule,” a policy analyst at the Competitive Enterprise Institute supports use of the CRA to overturn the payday loan rule. Among the seven reasons discussed in the blog are that the rule leaves low-to-middle income consumers without access to credit, payday loan users overwhelmingly approve of the product, and the rule is built on a flawed theory of consumer harm.
Read the full article at JD Supra.