On August 7, the National Association of Federally-Insured Credit Unions (NAFCU) and the Credit Union National Association (CUNA) approached the Consumer Financial Protection Bureau (CFPB or Bureau) with a joint appeal. The two influential credit union trade associations collectively requested that the CFPB delay enforcement and implementation of the small business data collection and reporting final rule under § 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as the Final Rule. They also urged for this delay to carry on until after the U.S. Supreme Court’s pending final decision.
The Final Rule, as specified under the Dodd-Frank Wall Street Reform and Consumer Protection Act, imposes new requirements on covered financial institutions regarding the collection and reporting of specific data pertaining to credit applications made by small businesses, namely women-owned and minority-owned businesses. While the intent of the rule is to foster greater transparency and thwart any discriminatory lending practices, the trade associations highlighted potential concerns surrounding its implementation in their letter to the CFPB.
The joint appeal from the NAFCU and the CUNA implores the CFPB to take into account the Supreme Court’s potentially precedent-setting ruling before enforcing the Final Rule. This, they contend, may prove critical in ensuring all impacted entities are equipped to meet the new regulation’s requirements. Both associations eagerly await the Supreme Court’s verdict, believing it may have serious implications for the Final Rule’s enforcement.
For further details on this development, you can find the full report here.