ELFA Files to Join Injunction to Stop Section 1071 Implementation
AUG 30, 2023 - 6:56 am
The Equipment Leasing and Finance Association filed to join an injunction to stop implementation of Section 1071 of the Dodd-Frank Act by the Consumer Financial Protection Bureau. The ELFA is asking the U.S. District Court for the Southern District of Texas to expand its recent injunction staying the effective dates of Section 1071 to include ELFA members. The injunction currently only covers members of the American Bankers Association, Texas Bankers Association and Rio Bank in McAllen, TX.
“ELFA has been working to make sure Section 1071 doesn’t make it more burdensome for our members and their customers in the $1 trillion equipment finance industry to do business together,” Ralph Petta, president and CEO of the ELFA, said. “The association is taking this legal action to ensure that all ELFA members are subject to the same compliance timeframe and to ensure that the same transactions are treated the same, regardless of the type of company that makes the loan.”
This is the latest action on Section 1071 by the association, which has engaged in both the legislative and regulatory arenas to defend its members’ interests and reduce the measure’s reporting regulations. Section 1071 will require financial institutions to collect information about credit applicants and financial data associated with the application’s disposition, including extensive pricing information, and report it to the CFPB on an annual basis.
Earlier this month, in a letter to the CFPB, the ELFA asked the bureau to expand the original injunction staying the effective dates of Section 1071 of the Dodd-Frank Act to include all affected financial institutions.
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