ICBA will continue fighting the Consumer Financial Protection Bureau’s 1071 small-business rule after a U.S. District Court denied ICBA’s legal challenge to the agency’s rulemaking.
Legal Challenge: In a court filing, ICBA, the Independent Bankers Association of Texas, the American Bankers Association, the Texas Bankers Association, Texas First Bank, and other intervenors argued that the bureau violated the law in issuing its 1071 rule by exceeding its statutory authority and by failing to comply with the Administrative Procedures Act.
Court Ruling: The U.S. District Court for the Southern District of Texas denied the plaintiffs’/intervenors’ motion for summary judgment and found the CFPB to be entitled to judgment as a matter of law on each of the APA claims set forth in the suit. ICBA remains committed to challenging this misguided rule and is prepared to leverage all available legal strategies to protect community banks and their customers.
Previous Developments: The CFPB in June issued an interim final rule following a Supreme Court ruling that ended a temporary injunction on the 1071 rule. In a statement following that decision, ICBA reiterated that the bureau exceeded its statutory authority when it finalized the rule and called on Congress to advance ICBA-advocated legislation to rein in CFPB regulatory burdens.
