The American Bankers Association, Texas Bankers Association and other plaintiffs today announced they have reached an agreement with the Consumer Financial Protection Bureau to end a lawsuit over changes to the bureau’s UDAAP exam manual.
The plaintiffs sued the CFPB in 2022, arguing that under the previous administration, the bureau had unlawfully expanded the statutory definition of “unfairness” to encompass discrimination. A federal judge in Texas granted summary judgment to the plaintiffs the following year. The CFPB appealed the ruling.
Under the terms of the joint stipulation announced today, the CFPB will dismiss its appeal.
ABA President and CEO Rob Nichols said that while bankers strongly support the fair enforcement of nondiscrimination laws, “the bureau’s extraordinary expansion of its statutory authority crossed the line.”
“We appreciate that the bureau recognizes this and has agreed to dismiss its appeal with prejudice in this case,” Nichols said.
Editor’s note: This story has been corrected to remove a CFPB quote, which concerned a separate matter involving Section 1071 compliance dates.
