Judge Blocks CFPB Plan to Check Banks for Discrimination, Says Agency Overstepped Authority

A federal judge in Texas ruled the Consumer Financial Protection Bureau exceeded its authority by trying to check banks for discrimination.
The judge said the CFPB needs clear congressional authorization for the power it claims, per a recent Supreme Court ruling on EPA emissions rules.
The CFPB wanted to use a law barring "unfair, deceptive or abusive acts" by financial firms to check for discrimination.
The judge said discrimination falls outside the scope of that law, which doesn't specify discrimination.
Banking groups that sued the CFPB claimed it didn't have authority for the discrimination checks and didn't properly notify firms before implementing them.

nytimes.com

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