Tuesday, June 18, 2024

Section 1071 injunction extended to all banks

A U.S. District Court judge on Oct. 26 broadened a partial injunction, originally issued to the Texas Bankers Association, the American Bankers Association and a Texas-based bank, to now include all banks nationwide subject to the Section 1071 Final Rule.

Judge Randy Crane barred the Consumer Financial Protection Bureau from implementing and enforcing the Sec. 1071 Final Rule against all banks and financial institutions, regardless of trade association membership, pending the U.S. Supreme Court’s issuing of its opinion on the constitutionality of the CFPB’s funding structure.

The original partial injunction against implementing the Sec. 1071 Final Rule, issued on July 31, was only for member banks of the American Bankers Association and/or the Texas Bankers Association.