Community Banks Seek to Join Suit Over Small Business Data Rule

Community banks asked to intervene in a lawsuit that has already given some lenders a temporary reprieve from the Consumer Financial Protection Bureau’s small business data collection rule.

The Independent Community Bankers of America (ICBA), the Independent Bankers Association of Texas, and Galveston County, Texas-based Texas First Bank asked to be included as a party in an April lawsuit over the CFPB’s small business data collection rule, according to an unopposed motion to intervene in the case filed Friday.

The agency’s rule, mandated by the 2010 Dodd-Frank Act, would require small business lenders to collect demographic data about their borrowers. ...