CFPB Extends Compliance Dates of Section 1071 Rule
Late last week, the U.S. Supreme Court ruled on the CFSA v Community Financial Services Association of America case holding that the Bureau of Consumer Financial Protection’s (CFPB) funding structure is constitutional. As a result of the U.S. Supreme Court decision, other courts around the country will now take up cases involving the CFPB which had been on hold pending the U.S. Supreme Court decision. These other cases involve challenges to CFPB’s Section 1071 business data collection rule, its credit card late fee rule for large credit card issuers, and CFPB’s revisions to its UDAAP examination manual in which the agency included discrimination as a basis for UDAAP violation. In general, the outstanding cases argue CFPB acted beyond the scope of agency authority when creating the rules and new interpretation of UDAAP.
On May 17, CFPB announced it plans to issue an interim final rule to extend the mandatory compliance dates of the Section 1071 business data collection rule. The extension is based upon the 290 days which have elapsed under the order issued by a Texas Court, which is one of the cases generally mentioned above, and the U.S. Supreme Court decision regarding CPFB’s funding structure. Under the extension:
| Compliance Tier | Original Compliance Date | New Compliance Date | First Filing Date |
| Tier 1 institutions (highest volume lenders) | October 1, 2024 | July 18, 2025 | June 1, 2026 |
| Tier 2 institutions (moderate volume lenders) | April 1, 2025 | January 16, 2026 | June 1, 2027 |
| Tier 3 institutions (smallest volume lenders) | January 1, 2026 | October 18, 2026 | June 1, 2027 |
The compliance extension announcement may be viewed here.
The U.S. Supreme Court decision may be viewed here.
