Posted 9/11/2023, 1:28:41 PM
CFPB Suffers Legal Defeat on Anti-Discrimination Authority
- U.S. judge rules CFPB does not have broad authority to tackle discriminatory banking practices, handing win to industry groups
- Lawsuit filed by banking, business groups argued CFPB unlawfully stretched mandate to include discrimination beyond existing fair lending laws
- Judge Barker ruled Dodd-Frank Act treats discrimination and unfairness as distinct concepts
- Ruling bars CFPB from enforcing policy against trade groups' members
- CFPB says it is reviewing decision and considering appeal options; maintains discrimination can meet 'unfairness' standard