The CFPB and two payday lender trade groups, The Community Financial Services Association of America Ltd. and the Consumer Service Alliance of Texas, filed a joint motion on Thursday to stay the lawsuit over the payday rule while also postponing the compliance date of the controversial rule, set for August 2019.

Currently the CFPB is reconsidering the rule, which puts restrictions on short-term, high-interest loan issuers. Staying the case would ultimately save valuable time as the bureau's decision about the rule could potentially moot the case and the need for any further litigation.

Ballard Spahr Partner Alan Kaplinsky told Law360, "It's clear the CFPB is not interested in litigating the case," a fact that does not surprise him given the CFPB's announcement in January it intended to "engage in a rulemaking process so that the bureau may reconsider the payday rule."

Although the CFPB designated February 2019 for issuing a notice of proposed rulemaking that would be the impetus for any potential payday rule changes. "If the judge signs that order, that will have the effect of staying everything until the CFPB has had an opportunity to look at the payday rule, take a fresh look at it and figure out what to do about it," Kaplinsky said.

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