On October 26, 2023, the Credit Union Times and Bloomberg reported that the CFPB’s small business lending data collection rule is now on pause nationwide after a Texas federal judge expanded an order that previously applied only to certain banks. In late July 2023, Chief Judge Randy Crane of the US District Court for the Southern District of Texas imposed a preliminary injunction stopping the CFPB from requiring members of the American Bankers Association, Texas Bankers Association, as well as Rio Bank of McAllen, Texas, to comply with the regulation until the Supreme Courts issues its ruling which is expected by June 2024.
In August 2023, a host of industry groups, including the Independent Community Bankers of America, the Credit Union National Association, the Cornerstone League and the Corpus Christi, filed motions to intervene in the case, asserting they were put at a competitive disadvantage by not applying the injunction to all companies subject to the rule. Crane expanded the injunction nationwide covering all banks, credit unions, fintechs, and other lenders under the CFPB’s supervision.
According to reports, the CFPB opposed the nationwide ban but is yet to issue its formal statement regarding the nationwide 1071 rule injunction.
Read the Bloomberg’s report here.
The Credit Union Times’ news article can be found here.