Rep. Williams Applauds House Passage of Resolution Disapproving of Final CFPB 1071 Rule

WASHINGTON, D.C. – Congressman Roger Williams (TX-25) released the following statement on Friday following the passage of S.J. Res. 32, Senate companion for H.J. Res. 66, a Congressional Review Act disapproving of the Consumer Financial Protection Bureau’s (CFPB) Dodd Frank Section 1071 Small Business Lending Data Collection Rule in the House by a vote count of 221 to 202:

“I applaud the House for passing S.J. Res. 32 condemning the CFPB’s relentless attack on Main Street America,” said Congressman Williams. “Small businesses are the backbone of the American economy, and it is crucial that they can access affordable credit to support and grow our communities. During a time where small businesses are facing crushing inflation and increasing borrowing costs, it is important that we put an end to the CFPB’s broad, burdensome, and difficult to implement rulemaking. It is now Biden’s turn to listen to the American people and sign this bill into law instead of bowing down to out of touch unelected bureaucrats.”

“By collecting and publishing personal demographic and other information, the CFPB is putting small business owners at risk of having their private financial affairs exposed to a watching world. Reporting these personal details is an invasion of privacy and a waste of resources in service of the CFPB’s woke agenda. This rule could hamstring lending to Main Street. The House is protecting Americans’ privacy and job creators by passing Congressman Williams’s crucial resolution, and I hope President Biden signs this legislation quickly,” said Kennedy.

“House passage of S.J. Res. 32 today is a victory for America’s small business owners and, frankly, for common-sense. CFPB took three pages of Section 1071 legislation and turned into 888 pages of bureaucratic regulation that will only complicate small business lending. Congress authorized the collection of 13 data points under Section 1071, but CFPB grossly abused its power with 81 data points in the final rule. Chairman Roger Williams’ leadership has been indispensable in fighting this regulatory behemoth and assault on Main Street small business lending. At a time when it is difficult to pass anything through a divided Congress, we urge President Biden not to veto this important bipartisan legislation for the good of small businesses and the community banks that serve them,”said Chris Furlow, President and CEO of the Texas Bankers Association.

Background:

S.J.Res.32 is a Congressional Review Act disapproving of the Consumer Financial Protection Bureau’s Dodd Frank Section 1071 Small Business Lending Data Collection Rule. This legislation would bar the CFPB from enforcing the 1071 rule. 

The rule, published in the Federal Register on May 31, 2023, is more than 900 pages long and requires lenders to report 81 data fields, including race, sex, gender identity, and ethnicity of loan applicants. Section 1071 forces lenders to pass increased compliance costs onto small business owners through higher interest rates or fees and less credit availability. Among concerns on compliance costs, the February CFPB major data breach involving unauthorized use of sensitive personal and business data by a CFPB employee makes the risk of data leaks clear. Disapproval of the CFPB’s 1071 rule ensures that this burdensome rule does not take effect, unnecessary costs and harms to consumers are avoided, and that small businesses can maintain access to affordable credit, including from community banks, to support and grow our economy.

• S.J. Res. 32, which passed the Senate with bipartisan support, is the Senate companion to H.J. Res. 66, which was introduced by Congressman Williams in the House on May 31, 2023.
• Biden has stated that he plans to veto this bipartisan legislation.
• Read the bill text here.
• Williams’ comments during floor debate prior to passage here.
• Read Williams’ opening remarks as prepared from delivery here.

###

Congressman Roger Williams is the Chairman of the House Small Business Committee and member of the House Financial Services Committee. He proudly represents the 25th Congressional District of Texas.