ABA appeals Section 1071 ruling

The American Bankers Association and a group of trade associations appealed a recent Texas federal court decision holding that the Consumer Financial Protection Bureau’s Section 1071 final rule did not exceed the bureau’s authority or violate the APA. The associations also moved the Fifth Circuit for a stay pending appeal.

Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act to require financial institutions to collect and report thirteen data points to the CFPB regarding credit applications by women-owned, minority-owned, and small businesses. Section 1071 also authorizes the CFPB to require additional data collection, but only if such data “would aid in fulfilling the purposes” of Section 1071.

ABA’s opening brief is due Dec. 3; CFPB’s response brief is due Jan. 6, 2025; and ABA’s reply brief is due Jan. 16, 2025.