Saturday, July 13, 2024

Injunction granted against CFPB on Sec. 1071

The U.S. District Court for the Eastern District of Kentucky granted a motion for injunction against the Consumer Financial Protection Bureau on Thursday evening, stopping the CFPB from enforcing its small business data collection rule (Sec. 1071).

The Order from the Court reads, “The Consumer Financial Protection Bureau is ENJOINED from enforcing the Small Business Lending Rule until the Supreme Court issues an opinion ruling that the funding structure of the CFPB is constitutional.”

The motion was presented by the Kentucky Bankers Association.

You can download the Order and the court’s judgment.

An initial analysis appears this Order means it is a NATIONWIDE injunction on the CFPB concerning 1071 enforcement, until the funding structure of the Bureau is ruled constitutional by the U.S. Supreme Court.

We will continue looking over this Order, however, and will have more information on it, but for now it appears to be a victory for the entire banking industry. It marks the second ruling against the CFPB in the past week, following the UDAAP Exam Manual Lawsuit results.