Add the agency’s Equal Credit Opportunity Act (ECOA) small-business loan data collection rule to those the Consumer Financial Protection Bureau (CFPB) won’t be going out of its way to enforce.
The bureau said Wednesday that in light of a stay imposed under Texas Bankers Association v. CFPB, the agency “will not prioritize enforcement of supervision actions with regard to entities that are currently outside the stay.”
“The Bureau takes this step in the interest of focusing resources on supporting hard-working American taxpayers, servicemen, veterans, and small businesses,” it said. “Even absent resource constraints, the Bureau would deprioritize enforcement of this rule because of the unfairness of enforcing it against entities not protected by the court’s stay but similarly situated to parties that are protected by the stay.”
The rule, contained in the bureau’s Regulation B (Equal Credit Opportunity Act, or ECOA), implements section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). Published May 31, 2023, it has a tiered compliance schedule that is based on an institution’s level of involvement in covered loans, with compliance to be phased in by Jan. 1, 2026.
The agency’s rule summary states that financial institutions that originated at least 100 covered credit transactions for small businesses in each of the two preceding calendar years are required to collect and report to the CFPB data on applications for credit for small businesses, including those that are owned by women or minorities. It said the rule also addresses the CFPB’s approach to privacy interests and the publication of data; shielding certain demographic data from underwriters and other persons; recordkeeping requirements; enforcement provisions.
The CFPB in recent weeks has also said it will not prioritize enforcement and supervision of a rule requiring nonbanks subject to orders due to alleged violations of consumer financial protection laws to register with the bureau; or focus on fines or penalties associated with the 2017 payday rule’s payment withdrawal and payment disclosure provisions.
A group of payday lenders challenged the 2017 payday rule and lost on appeal in 2022. The bureau announced its decision to deprioritize the payday rule provisions March 28, two days before they were to become operative.
CFPB Keeps Its Enforcement and Supervision Resources Focused on Pressing Threats to Consumers
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