Chamber of Commerce Says CFPB Is Enforcing Disputed Rule
Learn why the CFPB is being accused of exceeding its authority related to policing Unfair, Deceptive or Abusive Acts or Practices.
Bureau accused of exceeding authority related to Unfair, Deceptive or Abusive Acts or Practices.
The U.S. Chamber of Commerce and banking trade associations are upset that the CFPB continues to enforce a rule that the Chamber and groups are challenging in federal court.
And they want a federal judge in Texas to do something about it.
At issue is the CFPB’s contention that it can police discrimination as part of its power to enforce Unfair, Deceptive or Abusive Acts or Practices.
The Chamber, the American Bankers Association and other associations representing bankers filed suit last year in the U.S. District Court for the Eastern District of Texas, contending that the CFPB was exceeding its authority in attempting to police discrimination.
Inside the Request
In a request for a status hearing, the Chamber and the banking associations said the CFPB is pursuing enforcement “based on its novel legal theory.”
The request said that an announcement in the CFPB’s June 2023 Fair Lending Report makes it clear the agency is pursuing cases based on its interpretation.
“This novel, disparate-impact interpretation of the CFPB’s unfairness authority is what Plaintiffs argue exceeds the CFPB’s statutory authority and is arbitrary and capricious in violation of the [Administrative Procedure Act],” the document states. “Now that the CFPB has revealed that it is actively pursuing enforcement investigations on this theory, the need for relief is particularly acute.”
“As time goes on, the irreparable harms to Plaintiffs’ members—who must adopt costly compliance procedures to comply with the update—are piling up,” the groups added.
The Chamber has been leading a campaign against the CFPB that includes the lawsuit.