Trump CFPB’s Move to Halt Small Business Data Rule Draws Lawsuit

The Consumer Financial Protection Bureau is facing a lawsuit from community groups who claim the agency acted unlawfully to stop implementing a Biden-era small business demographic data rule.

The CFPB under acting Director Russell Vought improperly used courts to put the rule on hold without going through the necessary notice-and-comment rulemaking process, according to a complaint filed Wednesday in the US District Court for the District of Columbia.

The plaintiffs—including Rise Economy, the National Community Reinvestment Coalition, and the Main Street Alliance—are asking the court to declare those actions invalid.

“The Trump administration has for too long prevented the collection ...