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BREAKING NEWS: JUDGE EXTENDS TBA’S SEC. 1071 INJUNCTION TO NATIONWIDE COVERAGE

October 26, 2023 / Source: TBA

Moments ago, US District Court Judge Randy Crane extended the partial injunction issued to TBA, Rio Bank, and the ABA to apply nationwide to all entities subject to the Section 1071 Final Rule. This is a huge win for the industry!

In his Order, Judge Crane enjoined the CFPB from implementing and enforcing the Sec. 1071 Final Rule against the members of TBA and ABA, intervenors from the ICBA and IBAT, the Credit Union National Association, the Equipment Leasing and Finance Association, and all covered financial institutions pending the USSC’s rendering of its opinion in the¬†Community Financial¬†case on the constitutionality of the CFPB’s funding structure.¬†“Defendants shall immediately cease all implementation or enforcement of the Final Rule against Plaintiffs and their members, Intervenors and their members, and all covered financial institutions.”¬†As was the case in the original preliminary injunction, deadlines for compliance will be tolled until after the USSC issues its¬†Community Financial¬†decision.

We are delighted that Judge Crane who has been overseeing the case initiated by the Texas Bankers Association has issued an Order extending the Preliminary Injunction in that case to all lenders nationwide. Our case was always intended to cover all banks and the ruling sets the proper stage for uniformity and sensible industry response while the Supreme Courts makes a decision of the broader issue as to the constitutionality of the agency itself. In the interim, Texas Bankers Association will continue to pursue the equally important Administrative Procedure Act claims set forth in our Complaint likewise showing that the Rule finalized on March 30, 2023 was without legal basis.

TBA and our lawyers are digesting today’s ruling and will have more information to share as soon as possible. Read today’s opinion by Judge Crane¬†.

Thank you, Texas bankers, for leading the nation on this important issue!