The Senate has passed Sen. John Kennedy’s (R-La.) Congressional Review Act resolution to stop the Biden administration’s Consumer Financial Protection Bureau from enforcing its Dodd Frank Section 1071 small-business data collection rule. The resolution of disapproval now moves to the House of Representatives for consideration.
“Small-business owners are already suffering too much under Biden’s inflation, and the CFPB’s rule only further burdens them and puts their personal data at risk. The House should move quickly to pass this resolution so that lenders can continue to support small businesses and avoid unnecessary compliance costs,” said Kennedy.
Section 1071 requires covered financial institutions to collect and report certain personal information on small business loan applicants and report that to the CFPB. This information includes an applicant’s race, ethnicity and sex and whether the business is minority-owned, woman-owned or LGBT-owned. The CFPB may then make certain parts of that information public, including data that could publicly identify the small business credit applicant.
In August, a letter to CFPB Director Rohit Chopra urged the bureau to pause its 1071 data collection rule while the courts determine the validity of the Section 1071 rule.
Background: