CFPB Declines to Enforce Small Business Data Collection Rule


The CFPB announced it will not enforce a new small business lending data collection rule due to resource constraints, despite a court stay on the rule for some lenders.
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The Consumer Financial Protection Bureau said it won’t enforce a Biden-era small business lending demographic data rule so that it can preserve resources, even though agency leaders have already shut down most enforcement and supervision work in other areas.

The CFPB will not “prioritize enforcement or supervision actions” for compliance with the data collection rule, which is set to take effect for most lenders beginning in July, the agency announced Wednesday.

The decision was made in part because the US Court of Appeals for the Fifth Circuit in February issued a stay of the rule for members of the Independent ...

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