CUs Urge Parity by Filing Motion to Intervene in District Court 1071 Ruling

CUNA, working together with the Cornerstone League and Rally Credit Union, is taking action to broaden a court decision so credit unions have parity in an injunction to stop implementation of the Consumer Financial Protection Bureau’s (CFPB) Section 1071 Rule. The CFPB’s rulemaking requires financial institutions to make additional reporting for small business loans.

The organizations jointly filed a motion to intervene with the U.S. District Court for the Southern District of Texas. It is attached. In the court’s preliminary injunction to the rule last week, it narrowed its decision to only apply to members of the American Bankers Association and the Texas Bankers Association, which filed the challenge. However, implementation of this rule would affect all financial institutions that provide business loans. The motion aims to broaden the preliminary injunction to cover affected entities – including credit unions.

Our motion to intervene in the Texas suit is a critical step in protecting credit unions and the people we serve from an unfair and scattershot implementation of the 1071 rule. As it stands now, the rule is scheduled to go into effect on Aug. 29, with staggered compliance dates depending on certain criteria.

• Here is the CUNA News story
• Read the filed motion
• FAQs on the case and motion

Related: Banks From Coast to Coast Urge CFPB to Stay Implementation of its Section 1071 Final Rule
Related: Credit Union Trade Associations Urge CFPB to Stay Implementation of its Section 1071 Final Rule
Related: Trade Associations for Community Banks and Texas First Bank Move to Intervene in Case Challenging CFPB’s Enforcement of its Section 1071 Rule