WASHINGTON—The CFPB will deprioritize enforcement of its Section 1071 small-business lending data collection rule for businesses not covered by a recent court-ordered stay, the ABA Banking Journal reported.
In February, the Fifth Circuit Court of Appeals issued a stay on the rule’s enforcement in response to a lawsuit filed by the American Bankers Association, Texas Bankers Association, and others. The court also extended compliance deadlines, but only for members of the co-plaintiff associations and other intervenors in the case, the ABA Banking Journal reported.
In a statement, the CFPB said it will not focus on enforcement or supervision actions for entities currently outside the stay, choosing instead to prioritize more urgent threats to consumers, especially service members and veterans. The agency added that enforcing the rule on businesses excluded from the stay—but in similar circumstances as those covered—would be unfair