The Fifth Circuit Court of Appeals today granted a request by the Consumer Financial Protection Bureau and the American Bankers Association and other plaintiffs 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.
In a joint stipulation announced earlier this week, the bureau agreed to dismiss its appeal. The Fifth Circuit officially closed the case today, ending the lawsuit.
In a statement when the agreement was first announced, 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.
