In litigation representing the Kentucky Bankers Association and eight of its member banks from across the state, on September 14, 2023, MPM obtained a preliminary Injunction protecting them from any efforts by the federal Consumer Financial Protection Bureau (the “CFPB”) to enforce a major new regulation imposing onerous data collection and reporting burdens relating to small business lending.
The regulation was promulgated by the CFPB in March 2023, and the final regulation was a significant expansion of the data elements that the statute enacted by Congress specifically mentioned to be collected and reported. Believing that the CFPB’s regulation was legally invalid for a number of reasons and also bad policy, MPM was hired to challenge it. In a lawsuit filed in the United States District Court for the Eastern District of Kentucky, MPM’s first step was requesting a preliminary injunction stopping enforcement of the new rule while litigation over the rule could be decided by the courts. Despite facing vigorous opposition from the CFPB, the court ruled in favor of the banking industry and issued an injunction against the CFPB. A copy of the Opinion is available here. A copy of the Judgment is available here.
MPM’s legal team in this matter is John T. McGarvey and M. Thurman Senn.
