Banking industry loses challenge to CFPB small business loan rule

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Consumer Financial Protection Bureau اخبار

Randy Crane,5Th U.S. Circuit Court Of Appeals,Demographic Data

A federal judge on Monday rejected a banking industry-backed challenge to a rule adopted by the U.S. Consumer Financial Protection Bureau that requires...

- A federal judge on Monday rejected a banking industry-backed challenge to a rule adopted by the U.S. Consumer Financial Protection Bureau that requires lenders to gather demographic data on small business borrowers.

But industry groups including the American Bankers Association and Texas Bankers Association argued the judge should still block the rule on other grounds, leading to Monday's ruling. That data would be used to facilitate the CFPB's enforcement of fair lending laws to prevent discrimination. "It may well be that the final rule proves ill-advised as a policy matter, but that possibility does not itself make the final rule unlawful," wrote Crane, an appointee of Republican former President George W. Bush.The bureau in June extended the deadlines for lenders to comply with the rule. Those with the highest volume of small business loans are now required to collect data by July 2025.

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