On May 6, the U.S. District Court for the Southern District of Florida granted a plaintiff’s unopposed motion to stay the CFPB’s Section 1071 final rule and toll the rule’s compliance deadlines. As previously covered by InfoBytes, a plaintiff (a trade group in commercial finance) filed an unopposed motion to stay the final rule. The district court’s decision followed the plaintiff’s request to pause the rule’s enforcement for the duration of the 5th Circuit’s stay order in a separate case against the CFPB’s rule (covered by InfoBytes here).
The district court’s order noted the CFPB plans to issue an NPRM promptly and suggested the rulemaking might resolve the litigation. The CFPB also plans to submit status reports to the district court every 90 days and agreed to confer with the plaintiff within 30 days of a final rule issuance to decide further proceedings. The court mandated status updates every 60 days and required notification within seven days after the 5th Circuit stay is lifted.
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