July 31 (Reuters) - A Texas judge on Monday ruled that many lenders need not comply with a Consumer Financial Protection Bureau (CFPB) mandate to gather demographic data on small business borrowers while the U.S. Supreme Court weighs the agency's funding.
The Texas Bankers Association (TBA), American Bankers Association (ABA) and a small Texas bank sued in April, saying the CFPB had no authority to issue the rule because an appeals court found the regulator's funding structure unlawful.
McAllen, Texas, granted a preliminary injunction blocking the CFPB from enforcing the rule against members of both groups and McAllen-based Rio Bank.
The groups and the bank issued a joint statement saying they are pleased with the ruling, but "remain committed to our larger case" against the rule.
A spokesperson for the CFPB declined to comment.
The TBA includes 400 member banks, and while the ABA does not specify how many members it has, they collectively hold $19.2 trillion in deposits.
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https://www.reuters.com/legal/texas-judge-partially-blocks-small-business-loan-rule-2023-07-31/
