WASHINGTON—Despite significant effort on the part of credit unions and other organizations, and some support in Congress, one effort to void the Consumer Financial Protection Bureau’s section 1071 rule has been stymied, at least for now.
But it still remains in limbo until a court rules.
President Biden has vetoed a resolution of disapproval (S.J. Res. 32) for the CFPB rule. The Senate passed the measure in October, followed by the House on Dec. 1, with both credit union trade groups and other financial services organizations have voiced their opposition.
As CUToday.info has reported, Section 1071 is currently under a nationwide stay for all covered entities, after CUNA, Cornerstone League, and Rally Credit Union in Corpus Christi, Texas, successfully challenged the rule in court.
Banks have obtained a similar ruling.
Veto Override Unlikely
“While this rule may be well-intentioned, its real-life impact will harm the small business borrowers and consumers the CFPB aims to protect,” CUNA President and CEO Jim Nussle said in a statement.
The bill now returns to Capitol Hill, where Congress could potentially override the veto, although that seems highly unlikely.
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