Banking Groups Lose Challenge to CFPB Small Business Data Rule

A federal judge in Texas handed a loss to banking industry groups challenging the Consumer Financial Protection Bureau’s rule requiring lenders to collect demographic data on their small business borrowers.

Judge Randy Crane in the US District Court for the Southern District of Texas had put the rule on hold nationwide in October 2023, waiting for the US Supreme Court to rule on the constitutionality of the CFPB’s independent funding through the Federal Reserve. The high court in May upheld the agency’s funding in CFPB v. Community Financial Services Association of America, paving the way for Crane to consider ...