Banks to Appeal Loss in CFPB Small Business Data Rule Lawsuit

Banks plan to appeal a Texas federal judge’s decision that allowed the Consumer Financial Protection Bureau’s small business demographic data rule to take effect.

The plaintiffs—the American Bankers Association, the Texas Bankers Association, and Rio Bank of McAllen, Texas—plan to ask the US Court of Appeals for the Fifth Circuit to overturn Judge Randy Crane’s August decision rejecting their bid to eliminate the rule, according to a notice of appeal filed Wednesday in the US District Court for the Southern District of Texas.

Several other financial trade groups, including the Independent Community Bankers of America and America’s Credit Unions, joined ...