California Reinvestment Coalition sues CFPB alleging data collection failures
On May 14, the California Reinvestment Coalition (CRC) announced it filed a lawsuit in the U.S. District Court for the Northern District of California against the CFPB for allegedly failing to implement Section 1071 of the Dodd-Frank Act, which requires the Bureau to collect and disclose data on lending to small, women, and minority-owned businesses. In the complaint, the CRC argues that the failure to implement Section 1071 violates two provisions of the Administrative Procedures Act. Specifically, the CRC alleges the that Bureau has “unlawfully withheld and unreasonably delayed” the implementation of Section 1071 since Dodd Frank’s passage in 2011, and also, that the Bureau has acted “arbitrarily and capriciously” by informing financial institutions to “not to make [the] inquiries, nor compile, maintain, and submit [the loan application] data” required by Section 1071. The CRC claims that the failure to collect and publish the data has harmed its ability to advocate for access to credit, advise organizations working with women and minority-owned small businesses, and work with lenders to arrange investment in low-income and communities of color. The CRC is seeking the court to invalidate the Bureau’s countermanding of Section 1071’s requirements on financial institutions and an order or writ compelling the Bureau to issue a final rule implementing Section 1071.