CFPB Says Ruling on Bias Hurts Its Power to Prevent ‘Debanking’

Consumer Financial Protection Bureau examiners would be blocked from protecting customers who lose access to bank accounts for religious or other reasons if a Texas federal judge’s decision on the CFPB’s efforts to combat discrimination is allowed to stand, the agency told a federal appeals court.

There is no dispute “across the political spectrum” that discrimination based on race, religious belief, or other factors is improper, the CFPB said in its opening brief before the US Court of Appeals for the Fifth Circuit filed Wednesday. As a result, the agency said, the appeals court should restore a March 2022 update ...