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In the latest development to challenges to the CFPB’s 1071 rulemaking, plaintiff trade associations, including the American Bankers Association and the Texas Bankers Association, have filed a motion for summary judgment requesting the court bar enforcement of the Bureau’s Small Business Lending Rule.

Continue Reading Trade Groups Continue Fight Against CFPB’s 1071 Small Business Rulemaking

On September 1, the CFPB issued a Notice of Proposed Rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act, which amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report data regarding credit applications made by women-owned, minority-owned, and small businesses (we previously discussed the proposed rule in an earlier Consumer Finance & FinTech Blog post here).  The proposed rulemaking is an expansive 918 pages and the CFPB provides both a summary and table of contents to assist industry participants in their review and comments.

Continue Reading CFPB Issues Proposed Rule Under Section 1071 of Dodd-Frank to Collect Small Business Lending Data

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In a significant ruling on March 19, the Third Circuit Court of Appeals held that the CFPB can proceed with its lawsuit against a group of Delaware student loan trusts rejecting their claims that they are just passive financing entities outside the reach of the Bureau’s authority. 

Continue Reading Third Circuit Ruling Gives CFPB Green Light to Enforce Against Student Loan Trusts
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On December 19, President Biden vetoed the joint resolution (S. J. Res. 32) the US Senate and House of Representatives passed under the Congressional Review Act that would have repealed the CFPB’s small business data collection rule (Rule) known as “Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)” (we blogged about the rule and congressional challenge here and here).

Continue Reading President Biden Vetoes Congressional Review Act Disapproval of CFPB’s Small Business Lending Data Collection Rule
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On October 26, the United States District Court for the Southern District of Texas issued a nationwide preliminary injunction barring the CFPB from moving forward with implementing or enforcing the recently finalized Small Business Lending Rule, designed to implement Section 1071 of the Dodd-Frank Act. The injunction will likely remain in effect pending either the outcome of a trial on the underlying merits of the case or the Supreme Court’s reversal of Community Financial Services Association of America Ltd. v. CFPB. The Southern District of Texas previously issued a similar injunction in July in the same case, however, the original injunction applied only to the parties to the case (see previous blog post here).

Continue Reading Federal Court Issues Nationwide Injunction of CFPB’s Small Business Lending Rule
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On October 18, the Senate voted 53-44 to approve S.J. Res. 32, a resolution sponsored by Sen. Kennedy (R-LA) to overturn the implementation of the CFPB’s final rule under Section 1071 of the Dodd-Frank Act requiring lenders to report demographic data on small-business loan recipients (see our previous blogs on the rule here and here). The resolution invoked the Congressional Review Act (CRA) to disapprove the CFPB’s final rule – the CRA allows lawmakers to revoke a recently issued federal agency rulemaking by passing a resolution of disapproval against it. The resolutions must pass each chamber of Congress and need a presidential signature to take effect. The White House has threatened to veto the bill.

Continue Reading Senate Votes to Repeal CFPB Small Business Lending Rule
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On July 31, the U.S. District Court for the Southern District of Texas enjoined the CFPB from implementing and enforcing the small business lending rule (Section 1071) requirements pending the Supreme Court’s decision in Community Financial Services Association of America Ltd. v. CFPB, a challenge to the constitutionality of the CFPB’s funding structure (we previously discussed Section 1071 rulemaking in prior blog posts here and here, and the Texas lawsuit here). In particular, the court enjoined the CFPB from implementing and enforcing the final rule against the plaintiffs and their members, but denied the plaintiffs’ request for a nationwide injunction. 

Continue Reading Texas Court Enjoins CFPB’s Enforcement of Small Business Lending Rule
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Today, the CFPB has issued the small business lending final rule to implement changes to the Equal Credit Opportunity Act made by Section 1071 of the Dodd-Frank Act to require financial institutions to compile data regarding certain business credit applications and report that data to the CFPB (we previously discussed Section 1071 rulemaking in prior blog posts here and here). According to the CFPB, Section 1071’s purposes are “facilitating enforcement of fair lending laws and enabling the identification of business and community development needs and opportunities for women-owned, minority-owned, and small businesses.” While the final rule includes almost 900 pages of rulemaking, highlights include the following:

Continue Reading CFPB Issues Small Business Lending Rule

This week, CFPB Director, Rohit Chopra, appeared before the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Committee on Financial Services in conjunction with the CFPB’s submission of its Semiannual Report to Congress.  In his prepared testimony before both committee, the Director highlighted some of the CFPB’s work over the past six months, which includes: Continue Reading CFPB Director Testifies Before Congress

On April 15, the CFPB and FTC announced the release of a joint annual report to Congress administering the Fair Debt Collection Practices Act (FDCPA).  The annual report highlights both agencies’ efforts to protect and provide debt collection relief to consumers, particularly in light of the COVID-19 pandemic and resulting economic hardship. Continue Reading CFPB Signals Foray into Protecting Small Businesses from Abusive Debt Collectors