On November 14, the U.S. District Court for the Southern District of Texas denied a motion to stay the deadlines for the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act, pending appeal. The plaintiffs — a bank and a banking association — sought to delay compliance with the CFPB’s small business final rule, arguing they would face irreparable harm without a stay.  As previously covered by InfoBytes, the rule requires financial institutions to collect and disclose demographic data about small business loan recipients.

The plaintiffs filed their notice of appeal seeking to challenge this rule and appealed the district court’s ruling to the U.S. Court of Appeals for the Fifth Circuit (covered by InfoBytes here). The district court found that the plaintiffs did not meet the heavy burden required for such extraordinary relief and noted that the 5th Circuit had expedited the appeal already. The court emphasized that the regulation in question was deemed valid and that the appeal would likely be resolved before the first compliance date under the rule.

Upon request from the plaintiffs, the district court entered its final judgment on those rulings on September 23, closing the case.