PLAINTIFFS WIN INJUNCTION OVER CFPB SMALL BUSINESS LENDING DATA RULE

The U.S. District Court for the Southern District of Texas has ruled on a motion for preliminary injunction, granting an injunction to members of two trade groups and a private bank that filed suit challenging the Consumer Financial Protection Bureau’s (CFPB) final rule implementing the “Small Business Lending Rule Under the Equal
Opportunity Act (Regulation B)” pursuant to Section 1071 of the Consumer Financial Protection Act (“Rule”). See Texas Bankers Association vs. CFPB, No. 7:23-cv-00144 (S.D. Tex., order filed July 31, 2023); see our Alerts of Mar. 28 and Apr. 28, 2023. The plaintiffs had sought a nationwide preliminary injunction to prevent the CFPB from enforcing the Rule. The Rule requires banks and nonbanks to collect and report information about small business credit applications. Read More