CFPB will not enforce section 1071 on entities outside of legal challenge

The CFPB announced it will not enforce its small business lending data collection rule for entities outside of the stay of the rule granted by a district court in 2023. America’s Credit Unions members are covered by the 2023 decision, which is currently on appeal in the Fifth Circuit Court of Appeals. 

The announcement follows the bureau stating last month it would issue a new proposed rule on small business lending data collection under section 1071 of Dodd-Frank, which it said in a court filing would be “as expeditiously as reasonably possible.”

America’s Credit Unions, Cornerstone League, and Rally Credit Union challenged the rule after it was finalized, believing it exceeds the CFPB’s authority and accounts for the rule's costs and benefits in an arbitrary manner.

America’s Credit Unions also strongly supports legislation that the House Financial Services Committee advanced last month to repeal the rule.