Following years of legal action that have stalled the implementation of the bureau’s original Section 1071 rule, the CFPB announced that it will roll out a new version of the rule.

Jonathan McKernan, nominee for CFPB director, said he thought former CFPB Director Rohit Chopra was “on to something” by focusing on data collection issues.

Proposed in January, the rule would ban the use of certain terms in contracts for consumer financial products or services that limit the rights of consumers.

A judge granted the bureau’s request to withdraw from the 2022 lawsuit, but the case will move forward.

The consumer reporting agency asserted that some of the claims in the lawsuit exceeded their statutes of limitation.

McKernan vote expected by May; CFPB reconsiders registration requirements for nonbanks; CFPB’s planned refund of Townstone settlement in limbo.

The injunction is in place until the court resolves the lawsuit brought by the NTEU. The Trump administration appealed the order.

Bureau officials who voluntarily resigned recently include Mark McArdle, assistant director of mortgage markets, and Gabriel O’Malley, deputy enforcement director for policy and strategy.

New CFPB leadership said the bureau’s investigation into Townstone was not prompted by any actual harm, but by quota-style statistics.

A decision is expected no later than April 1, regarding a potential preliminary injunction that would prevent future mass terminations.