Tuesday, June 18, 2024

OBA, other associations, urge delay of Sec. 107

The Consumer Financial Protection Bureau should extend a court-ordered stay of its Section 1071 final rule to cover all FDIC-insured banks while the U.S. Supreme Court considers a separate legal challenge concerning the bureau, the OBA and 49 other state bankers associations said in a August letter to CFPB Director Rohit Chopra.

A federal judge in Texas in late July issued a preliminary injunction of the rule until the Supreme Court decides on a case involving the constitutionality of the bureau’s funding structure in CFPB v. Community Financial Services Association of America.

The 1071 case was brought by the Texas Bankers Association, Rio Bank and the American Bankers Association, which asked for a national injunction covering all lenders.

However, the judge sided with the CFPB’s request to have the order apply only to the associations’ members. ABA and TBA have since asked Chopra to delay 1071 compliance for all banks, and in their letter, the OBA and other state associations repeated that request.