The Consumer Financial Protection Bureau’s 1071 small-business rule exceeds the agency’s statutory authority and is arbitrary and capricious, ICBA said in a new court filing.
Details: In an opening appellate brief, ICBA and other groups said the court should set aside the CFPB’s rule because the bureau:
Exceeded its statutory authority by requiring the collection and disclosure of pricing information and the LGBTQ status of primary owners of small businesses applying for loans.
Acted unreasonably when it blinded itself to accurate data before relying on inaccurate and admittedly incomplete data to estimate costs.
Improperly glossed over litigation and reputational damage costs.
Background: The brief is part of ICBA’s appeal of a September district court decision denying ICBA’s lawsuit challenging the 1071 rule.
Previous Case: In earlier district court filings, ICBA, the Independent Bankers Association of Texas, the American Bankers Association, the Texas Bankers Association, and Texas First Bank 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.
ICBA View: ICBA President and CEO Rebeca Romero Rainey said in a message to community bankers in September that ICBA continues to support legislation to rein in CFPB regulatory burdens, adding, “With the 1071 rule posing a serious threat to small businesses nationwide, ICBA will continue utilizing every available channel to mitigate the negative impact of this and other misguided CFPB rulemakings on community banks and the local communities you serve.”
