The Texas Bankers Association this week sued to block the Consumer Financial Protection Bureau from implementing its final rule under Section 1071 of the Dodd-Frank Act. Section 1071 requires the collection and submission of data related to credit applications by women-owned, minority-owned and small businesses. The lawsuit was joined by TBA member Rio Bank, based in McAllen, Texas.
The “CFPB has taken three pages of legislation requiring 13 data points and turned it into nearly 900 pages of regulation requiring 81 data points. CFPB repeatedly exceeds its authorities and ignores required rulemaking law because its unconstitutional funding and leadership structure make it accountable to no one,” said TBA President and CEO Chris Furlow. “It is unfortunate that the courts are currently the only recourse to challenge a virtually untouchable agency that believes it can hold everyone to account but itself.”