On July 25, 2025, the Ballard Spahr reported that a number of community groups filed a complaint with the U.S. District Court for the District of Columbia against Acting CFPB Director Russell Vought and the CFPB seeking to force the agency to implement the section 1071 rule. The community groups that filed the lawsuit include Rise Economy, fka California Reinvestment Coalition (Rise), the National Reinvestment Coalition (NCRC), the Main Street Alliance (MSA) and Reshonda Young.
In light of ongoing litigations concerning the final rule, the CFPB extended the compliance dates for the small business lending rule. The CFPB also previously announced that it will not prioritize enforcement of the rule and that it will initiate new rulemaking.
The complaint states:
“CFPB’s refusal to implement [the] Section 1071 [rule] violate the Administrative Procedure Act and the Equal Credit Opportunity Act. CFPB is unlawfully withholding and unreasonably delaying agency action, amending its duly promulgated regulations without observance of procedure required by law, not acting in accordance with the Equal Credit Opportunity Act, and acting arbitrarily and capriciously.”
Read the Ballard Spahr article here.