On November 15, the U.S. District Court for the Southern District of Texas overseeing the ongoing legal challenge to the CFPB’s Section 1071 small business lending rule (previously discussed here, here, here, and here), issued an order denying the plaintiff trade groups’ motion to toll the deadlines of the rule while an appeal moves through the Fifth Circuit.Continue Reading Federal Court Denies Request to Delay CFPB’s Small Business Lending Rule as Compliance Deadlines Approach
On November 13, the Consumer Financial Protection Bureau released a “pilot study” on the small business lending market revealing “significant disparities” in how lenders treat black and white small business owners. As part of its study, the CFPB conducted matched-pair testing at 50 bank branches in New York and Virginia using actors who posed as small business owners. Black participants were provided slightly more favorable financial profiles compared to the white participants. In many tests, the black and white participant each met with the same bank representative.Continue Reading CFPB Study Finds Differential Treatment in the Small Business Lending Market