Credit/Shutterstock
On Wednesday, CUNA, the Cornerstone League and Rally Credit Union jointly filed an Emergency Motion for Preliminary Injunction to include credit unions in a previously-issued preliminary injunction of the CFPB's 1071 rule that only included members of the American Bankers Association (ABA), Texas Bankers Association and Rio Bank.
This legal move came after Monday's decision by the U.S. District Court for the Southern District of Texas to grant a motion to intervene that was filed by the three credit union organizations.
Earlier this month, the group filed the motion with the court after it ordered the preliminary injunction to the rule's implementation that is set to go into effect on Aug. 29. The three credit union organizations argued that the preliminary injunction should also apply to credit unions and not just banks.
The 1071 rule 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.
"CUNA, Cornerstone and Rally seek expansion of the injunction to apply to credit unions, and all financial institutions covered by the rule. There are questions about this rule's impact on the ability of credit unions to serve small businesses, not to mention the current questions about the bureau's constitutionality," CUNA President/CEO Jim Nussle said in a prepared statement on Thursday. "Credit unions nationwide deserve the same relief granted to banks, especially since the CFPB itself noted in the final rule that smaller financial institutions will face difficulties complying with the rule in a timely manner."
Also joining CUNA, Cornerstone League and Rally in Thursday's court filing was Texas First Bank, the Independent Bankers Association of Texas and the Independent Community Bankers of America.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
