08.26.24

US Lenders Lose Court Battle Over CFPB Rule to Collect Small Business Data

by: Nate Raymond

The Consumer Financial Protection Bureau (CFPB) rule requiring lenders to gather demographic information about small business borrowers has leapt another legal hurdle. A federal judge rejected a banking industry-backed challenge that argued that the rule’s data collection method was flawed. U.S. District Judge Randy Crane in McAllen, Texas, ruled that the challenge concerned a disagreement with the CFPB’s determinations rather than a dispute over the regulator’s statutory authority to adopt the rule, according to the report. The American Bankers Association, the Texas Bankers Association and other industry groups were among those who had asked the judge to block the rule. Opponents of the rule had argued that the flaws in the rule’s data collection methods could undercut the statute’s purpose and increase loan costs.

Read the full article on Reuters