WASHINGTON—Sen. Tim Scott (R-SC) and Rep. William Timmons (R-SC) have sent a letter to CFPB Director Rohit Chopra expressing opposition to the Bureau's section 1071 proposed rule regarding data collection.
NAFCU also offered recommendations and included a warning that the inaccurate visual observations of sensitive data would not only threaten the integrity of other valuable section 1071 data, but would also add unnecessary friction to small business relationships and give rise to avoidable, unreasonable fair lending risks.
In the letter, the congressmen urged the Bureau to "change course."
"We feel that the CFPB has failed to take the appropriate steps to engage with these institutions on this proposed rule, and by doing so, we believe that the Bureau has fashioned a rule that would hurt not only these lending institutions, but American farmers themselves,” wrote Scott and Timmons in their letter. “In short, we feel that these actions being proposed by the CFPB are misguided and ill-informed, especially considering the challenges that farmers are currently facing due to rising inflation, prolonged supply chain disruptions, and labor shortages."