Judge Rules CFPB Exceeded Authority in Trying to Address Bank Discrimination
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A federal judge ruled the CFPB exceeded its authority by trying to address discrimination in banking. Trade groups sued, arguing the CFPB lacks this power.
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The judge agreed, saying Dodd-Frank treats discrimination and unfairness as distinct. This bars CFPB from regulating firms for discrimination.
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CFPB wanted to scrutinize policies that exclude or offer services in a discriminatory way. It has not brought any enforcement actions yet.
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CFPB is reviewing the ruling and may appeal. It says discrimination can meet the standard of unfair practices.
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Trade groups argued CFPB was acting arbitrarily by scrutinizing "disparate impacts." They say a court ruling invalidated CFPB's authority.