In a shocking development yesterday, the U.S. Court of Appeals for the Fifth Circuit issued a per-curiam, single-sentence order purporting to “clarify” its prior stay of the compliance date for the Consumer Financial Protection Bureau’s (CFPB) payday loan rule. The new order provides that the rule will go into effect on March 30, 2025, 286 days after the Supreme Court entered its judgment in the CFSA lawsuit and not 286 days after the Fifth Circuit’s subsequent decision not to rehear the case en banc. The new order does not even attempt an explanation on how it conforms with the earlier order that the rule would be stayed “until 286 days after resolution of the appeal.”
We have not heard yet from the plaintiff trade groups what, if anything, they plan in response to this development. However, one thing is clear: Companies impacted by the CFPB payday rule need to devote all necessary resources, on a crash basis, to address the accelerated compliance date.
