Biden vetoes resolution to void CFPB Section 1071 rule

An effort to void the Consumer Financial Protection Bureau’s (CFPB) section 1071 rule ended at the White House late Tuesday. As anticipated, President Joe Biden vetoed a resolution of disapproval (S.J. Res. 32) for the CFPB rule.  The Senate passed the measure in October, followed by the House on December 1, and CUNA and NAFCU wrote in support of the resolution.  

Section 1071 is currently under a nationwide stay for all covered entities, after CUNA, Cornerstone League, and Rally Credit Union in Corpus Christi, Texas, successfully challenged the rule in court.   

CUNA President/CEO Jim Nussle voiced concerns with the higher costs the rule could potentially bring. “While this rule may be well-intentioned, its real-life impact will harm the small business borrowers and consumers the CFPB aims to protect.” 

The bill now returns to Capitol Hill, where Congress could potentially override.  It is not considered likely, however.