ICBA’s actions to challenge the Consumer Financial Protection Bureau's Section 1071 final rule and seek injunctive relief for community banks is making headlines.
Media Coverage: Bloomberg Law, Banking Exchange, and Ballard Spahr’s Consumer Finance Monitor covered ICBA’s recent motion and complaint calling on the U.S. District Court for the Southern District of Texas to invalidate the 1071 final rule and enjoin the CFPB from enforcing it.
Court Filings: In a motion to intervene and in a separate complaint, ICBA, the Independent Bankers Association of Texas, and Texas First Bank called on the court to permit the groups to join the TBA v. CFPB case, declare that the 1071 final rule is invalid and unenforceable, and provide injunctive relief. The filings explained that the limited injunctive relief that the CFPB requested and the court granted to the parties in TBA v. CFPB does not extend to all community banks.
CFPB Letter: ICBA separately sent a letter to the CFPB reiterating its call for the agency to stay the effective date of its 1071 rule pending a court challenge to the constitutionality of the bureau’s funding structure. As ICBA told the CFPB in a March letter, a stay would provide regulatory certainty while the U.S. Supreme Court reviews a U.S. Court of Appeals for the Fifth Circuit decision that the CFPB’s funding structure violates the Constitution’s appropriations clause and separation of powers.
Grassroots Resources: ICBA continues calling on community bankers to use its Be Heard grassroots action center to urge their lawmakers to support a resolution to block the 1071 rule as well as ICBA’s customizable resources to educate and engage their customers on the issue.
Compliance Resources: Meanwhile, ICBA offers a summary of the rule as well as more than 100 Q&As about it on the ICBA Compliance Vault, while the CFPB offers frequently asked questions and a small entity compliance guide for more information.
