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Banks Outline Case Against CFPB Expansion of Fair Lending Exams

June 28, 2022, 5:37 PM

The Consumer Financial Protection Bureau overstepped its authority by expanding bank exams to cover potential discrimination outside of lending activities, several industry groups said Tuesday.

The CFPB in March updated its examination manual to allow examiners to review banks for discriminatory practices in account openings and other areas that aren’t covered by fair lending laws. The agency said it would use its broad Dodd-Frank Act powers to go after “unfair” practices.

The change is unlawful because Congress didn’t intend for the bureau’s unfair, deceptive and abusive acts and practices (UDAAP) authority to apply to discrimination, the American Bankers ...