The Consumer Financial Protection Bureau announced yesterday it will not prioritize enforcement of its Section 1071 small-business lending data collection rule for businesses not covered by a recent court-ordered stay.
In February, the Fifth Circuit Court of Appeals granted a stay in enforcement of the rule in a lawsuit brought by the American Bankers Association, Texas Bankers Association and others. The court also extended the compliance deadlines to reflect the stay, but only for members of the co-plaintiff associations and intervenors in the case.
In a statement, the CFPB said it will not prioritize enforcement or supervision actions for entities currently outside the stay. Instead, it will focus on “pressing threats to consumers, particularly servicemen and veterans.” The bureau also said it will deprioritize enforcement of the rule “because of the unfairness of enforcing it against entities not protected by the court’s stay but similarly situated to parties that are protected by the stay.”
