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League Comments on CFPB's Small Biz Data Collection Proposal

Authored By: Lewis Wood on 1/7/2022

Your League this week submitted comments on the Consumer Financial Protection Bureau's proposed data collection under Section 1071 of Dodd-Frank, arguing the proposal represents an incredibly burdensome new regulation for community lenders, like credit unions.

Section 1071 of the Dodd-Frank Act requires financial institutions collect and report certain data regarding applications for credit for women-owned, minority-owned, and small businesses.

"The proposal will require covered financial institutions to collect and report to the Bureau more than 21 data elements on applications for credit by small businesses in order to 'facilitate the enforcement of fair lending laws' and to 'enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses,'” notes our letter.

"While we support this intent, the proposal is quite simply overly broad and will be incredibly burdensome."

The Virginia League has been looking for ways for credit unions to share resources, expand their reach to the underserved and continue the growth of institutions. This proposal will hinder that.

View the letter

Related: Consumer Groups to CFPB - Issue Tough Small Business Lending Rule

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