CFPB official seal. Credit/Shutterstock
On Monday, the U.S. District Court for the Southern District of Texas granted a motion to intervene that was filed by CUNA, the Cornerstone League and the $4.2 billion Rally Credit Union in Corpus Christi, Texas on Thursday.
The group filed the motion with the court concerning the court's ruling earlier this month in which it ordered a preliminary injunction against the CFPB's section 1071 rule – an injunction that only applied to members of the American Bankers Association.
In a statement from CUNA on Monday, with the court's ruling in favor of CUNA, the Cornerstone League and Rally, "it paves the way" for the group to file a motion to ensure the injunction applies to credit unions and not just ABA members.
According to CUNA, the 1071 rule, which is slated to go into effect on Aug. 29, would require financial institutions to collect and report specific data on applications for credit for small businesses. Financial organizations have argued the rule is an unnecessary regulatory burden, especially for smaller institutions like credit unions.
"This decision is a step in the right direction, but there is more to be done to ensure credit unions have parity with banks when it comes to implementation of the CFPB's 1071 rule," CUNA President/CEO Jim Nussle said. "The constitutional questions under consideration by the Supreme Court have direct bearing on the CFPB's authority to issue the rule, and we will file another motion shortly to ensure equal protection of credit unions while these underlying legal issues are addressed."
According to Monday's statement from CUNA, "The motion to intervene emphasized the need for consistency in implementation of this rule, particularly as the additional data collection presents increased costs, compliance resources and training for covered institutions."
A statement on Thursday, after the group filed its motion, said if the motion to intervene is accepted, implementation and enforcement of the 1071 rule "will be postponed until questions about the CFPB's constitutional structure are resolved by the Supreme Court or the injunction is lifted."
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
