On September 15, 2023, the ABA Banking Journal published an article announcing a Ketucky federal judge’s nationwide injunction blocking enforcement of the CFPB’s Section 1071 final rule until the U.S. Supreme Court rules on the constitutionality of the bureau’s funding structure. The said injunction is separate from the ruling issued by a Texas judge in July, which only applied to ABA and Texas Bankers Association members.
According to the ABA Banking Journal, the Kentucky Bankers Association and eight banks sued the CFPB in federal court in August over the small business lending rule. The plaintiffs asked the court to block enforcement of the rule while the Supreme Court considers CFPB v. Community Financial Services Association of America, which is scheduled to be argued in October and where a decision could be released any time before the end of June, 2024.
Read the ABA’s article here.