Business groups sue consumer finance regulator over anti-discrimination guidance

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A collection of business groups filed a lawsuit against the Consumer Financial Protection Bureau alleging that it overstepped its authority with a new anti-discrimination policy targeting financial firms.

The U.S. Chamber of Commerce, joined by the American Bankers Association and other business groups, filed the lawsuit against the CFPB and its director, Rohit Chopra, on Wednesday in Texas federal court.

The challenge asserts that the CFPB should have undertaken the change through the rulemaking and public comment process, rather than through a change to the manual.“The [CFPB] is operating beyond its statutory authority and in the process creating legal uncertainty that will result in fewer financial products available to consumers,” said Neil Bradley, U.S. Chamber executive vice president and chief policy officer.

While federal law forbids discrimination in lending on the basis of sex, race, religion, and more, current law is less clear as it relates to other financial products such as bank accounts, according to the Wall Street Journal.

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