CFPB, Consumer Groups Drop Business Lending Suit After Rewrite

The Trump administration and consumer groups agreed to dismiss a lawsuit over the Consumer Financial Protection Bureau’s failure to enforce a Biden-era small business demographic data collection rule after the agency finished overhauling the policy.

Rise Economy, the National Community Reinvestment Coalition, and the Main Street Alliance sued the CFPB last July, asking a federal judge to enforce a 2023 rule that required small business lenders to collect data about borrowers’ race, gender, and other demographic information in a bid to enforce fair lending standards.

The parties agreed to dismiss the case voluntarily, according to a notice filed Friday in ...