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CUNA backs bill to replace Section 1071 of Dodd-Frank

July 14, 2022

CUNA supports legislation that would make the Consumer Financial Protection Bureau (CFPB) more responsive, the Making the CFPB Accountable to Small Business Act. The bill was introduced by Rep. Scott Fitzgerald, R-Wis., and would replace Section 1071 of Dodd-Frank with new language.

“We support the goals of your legislation that would make the CFPB more responsive to the needs of small entities by repealing Section 1071 of the Dodd-Frank Act,” the letter reads. “In its place, the legislation would require the CFPB to explicitly justify decisions that ignore the interests of small businesses during the rulemaking process. These changes will shed light on the Bureau’s decision-making and ensure appropriate consideration of cost increases on small businesses and the credit unions that serve them.”

CUNA supports the goals of Section 1071 but has concerns with the concern and complexity of the CFPB’s proposed rule on Section 1071, which would require financial institutions collect and report certain data regarding applications for credit.

“The overly broad scope of the proposed Section 1071 rule will undoubtedly raise the cost of small business borrowing and require covered financial institutions to collect data on businesses that are not ‘small businesses’ by any traditional metric,” the letter reads.