Federal Court Grants Bankers' Requested Stay From Compliance With The CFPB's Small Business Data Collection Rule

On July 31, the US District Court for the Southern District of Texas issued an order granting in part and denying in part the motion for preliminary injunction filed by the Texas Bankers Association, Rio Bank (a Texas state-chartered Bank), and the American Bankers Association (ABA) related to the Consumer Financial Protection Bureau's Final Rule entitled "Small Business Lending Rule Under the Equal Credit Opportunity Act" (Rule) which requires both banks and non-bank commercial lenders to obtain and report extensive information about certain commercial credit applicants. (Note: the Rule represents the CFPB's efforts to implement Section 1071 of the...