Supreme Court Ruling Means CFPB Must Start Over on Payday Loan Rules, Attorney Argues

A Fifth Circuit Court panel is questioning whether a U.S. Supreme Court ruling requires the Consumer Financial Protection Bureau to invalidate a 2020 payday rule and to restart the process of new payday loan regulations. 

Christian Vergonis, attorney for the payday loan industry trade associations that brought the case against the Bureau, argued that a 2020 rule that limited lenders from accessing borrowers' bank accounts to collect payments runs afoul of federal rulemaking procedures and the Supreme Court precedent, and it should therefore be struck down, Pymnts.com reported.

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