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 order retains the prohibitions on destruction of records, wholesale termination of contracts, and transfer of funds.

The MBA has offered a number of suggestions on the New York Department of Financial Services’ proposed CRA requirements for nonbanks.

Judge Amy Berman Jackson said the evidence in the lawsuit makes it clear that the Trump administration has no intent of operating the CFPB at all.

The move could set a dangerous precedent, according to Adam Rust, director of financial services at the Consumer Federation of America.