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Representative Scott Fitzgerald, R-Wisc., Wednesday introduced the NAFCU-supported Making CFPB Accountable to Small Business Act, a bill that would repeal the Dodd-Frank Act’s burdensome data collection rule, Section 1071. NAFCU has sought a number of changes to the rule, citing the significant compliance costs and the additional burden it would place on credit unions.

“President Biden’s woke agenda has come for community banks and credit unions,” said Fitzgerald. “The Biden administration’s overregulation of the banking industry, all in the name of equity, is squeezing community lenders who cannot afford the costs associated with compliance. Wisconsin lenders will be at risk if Section 1071 is implemented and bureaucrats fail to consider the needs of small businesses.”

The legislation would also require the CFPB to tailor its regulations for small businesses undergoing the Small Business Regulatory Enforcement Fairness Act (SBREFA) panel reviews. 

“NAFCU thanks Representative Scott Fitzgerald for his leadership to ensure small businesses and the credit unions they partner with are not bogged down with burdensome regulations that impede access to credit,” stated NAFCU President and CEO Dan Berger. “The Making the CFPB Accountable to Small Business Act will repeal Section 1071 of the Dodd-Frank Act, a burdensome data collection rule for small businesses, and push for the necessary tailoring of regulations under SBREFA panel reviews.

“We look forward to working with Representative Fitzgerald to make sure the CFPB does not obstruct Main Street’s success,” concluded Berger.

NAFCU will monitor the bill’s movement throughout Congress and engage with lawmakers to ensure credit unions can best serve small businesses.