InfoBytes Blog
Republican House Financial Services Committee members seek clarity on 1071 rule implementation timeline
On April 18, Republican members of the House Financial Services Committee sent a letter to CFPB Director Rohit Chopra to express concern over the lack of clarity regarding the implementation timeline of the CFPB’s small business data collection rule, referenced as the 1071 Rule. As previously covered by InfoBytes, in October of last year, a Texas District Court issued a preliminary injunction that required the CFPB to halt implementation of the 1071 Rule, and directed the Bureau to extend the rule’s compliance deadline “to compensate for the period stayed.” In the letter, republican lawmakers stress that the CFPB has been “reluctant” to confirm whether it will comply with the court order, which has led to confusion among regulated financial institutions regarding compliance timeframe with the 1071 Rule. The letter also highlights that some prudential regulators are reportedly advising institutions to prepare for compliance by October 1, despite the court order. Accordingly, Republican members urge the CFPB to provide clear guidance affirming compliance with the court order and extending deadlines accordingly, including with respect to the rule’s transition period for data collection and reporting requirements.