CFPB Previews Section 1071 Proposals Under Consideration

The Consumer Financial Protection Bureau today issued an outline of the proposals it is considering for its rulemaking to implement Section 1071 of the Dodd-Frank Act, which concerns the collection of credit application data for women-owned, minority-owned and small businesses. The bureau issued this document ahead of a planned Small Business Advocacy Review panel—to be held in October—that will convene to examine the effect of the potential rule on small businesses, as required by the Small Business Regulatory Enforcement Fairness Act.

Among other things, the outline addresses the scope of the rulemaking, the proposed definitions of several key terms, data points required by Section 1071, privacy considerations and the implementation timeline that the bureau is considering.

Small entity representatives from two ABA member banks will participate in the SBREFA review, providing advice and recommendations on the potential effects of the proposals being considered. This feedback will be incorporated into a report the bureau will issue within 60 days of convening the panel. The bureau is also collecting public feedback on the proposals being considered. Comments may be emailed to [email protected] by Dec. 14, 2020.