ICBA expressed opposition to President Joe Biden’s veto of a bipartisan resolution to overturn the Consumer Financial Protection Bureau’s Section 1071 rule and called on Congress to override the veto.
Details: In a news release, ICBA cited the bipartisan passage of S.J.Res.32 in the House and Senate to nullify the small-business data collection and reporting requirements. “We call on Congress to override President Biden’s veto to avoid degrading the ability of community banks to meet the needs of small businesses while requiring financial institutions to burden their customers with invasive and personal questions the CFPB would then publicly report,” ICBA President and CEO Rebeca Romero Rainey said.
Background: The ICBA-opposed CFPB rule requires lenders to collect and report data on credit applicants, including the race, sex, and ethnicity of the principal owners as well as gross annual revenue. S.J.Res.32 would provide for congressional disapproval of the 1071 rule and dictate that it has no force or effect, requiring the bureau to craft a new rule.
Veto: Biden’s veto sends S.J.Res.32 back to Congress following passage on a 221-202 vote in the House earlier this month and a 53-44 Senate vote in October. To override the veto, Congress would need to pass the resolution with a two-thirds majority in each chamber.
Outlook: As ICBA calls on lawmakers to override the president’s veto, community bankers can continue using ICBA’s customizable communications resources to educate and engage their customers on the ICBA-opposed 1071 rule.
