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A federal court in Texas this week extended its stay of the CFPB's payday lending rule compliance date for both the ability-to-repay (ATR) and payment provisions. The bureau recently issued proposed rules to remove mandatory underwriting requirements, including ATR provisions, and delay those provisions' implementation date by 15 months.

Commenting on the bureau's proposal to delay the ATR provisions until Nov. 19, 2020, NAFCU offered its support and urged the bureau to expand the rule's safe harbor to encompass all future iterations of the NCUA's payday alternative loans (PALs). The NCUA is currently in the rulemaking process of a second PAL option.

The payday rule had been set to take effect in August; however, a lawsuit was brought against the bureau in federal court in Texas to prevent enforcement of the payday lending rule. The court ultimately granted a stay of the rule's compliance date following the bureau's announcement of a pending proposal.

It's unclear how this extended stay of both the payday rule's ATR and payment provisions will affect the bureau's proposal to delay the ATR provisions. NAFCU will keep credit unions updated on this issue.