A consortium of trade associations have recently penned a letter to the Consumer Financial Protection Bureau (CFPB) Director, Rohit Chopra, calling for the pause in the effective and tiered compliance dates of the small business lending rule. Citing a disparity that stems from the judgment of a Texas federal district court, the group is addressing concerns over its treatment in the lawsuit.
In this lawsuit, the CFPB’s small business lending rule was contested, with preliminary injunctive relief being granted exclusively to the plaintiffs and their members. This circumstance has raised concerns among other stakeholders who feel left out from the injunctive relief. The trade associations, which include the American Financial Services Association, Consumer Bankers Association, CRE Finance Council, and Equipment Leasing and Finance, have called to CFPB to address these disparities.
The CFPB’s Small Business lending rule seeks to instigate changes in the way loans and credit services are offered to small businesses. The current lawsuit, and the demand for the pause in its effective date, puts into question its future implementation and impact on the lending landscape.
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