Nofziger Comments on CFPB Anti-Bias Exam Policy Court Loss
Dustin Nofziger, a member of Pryor Cashman’s Financial Institutions Group, spoke with Law360 about the Consumer Financial Protection Bureau’s (CFPB) loss in a Texas District Court regarding its anti-bias exam policy.
In “4 Questions About CFPB’s Defeat On Anti-Bias Exam Policy,” Dustin notes that the CFPB is likely to appeal the decision, which overturns the regulator’s policy that would look for discriminatory practices at banks and other companies. But that appeal would be heard in the Fifth Circuit, which is unlikely to be friendly to the agency: “They’re going to have an uphill battle there, but I would imagine the CFPB is going to want to appeal anyway.”
Dustin also points out that the decision against the CFPB could open the door for more litigation against the agency from a wider range of trade groups:
Although the exam policy may be vacated, there will be trade groups not covered by Friday’s injunction that will want to provide their members with an additional layer of protection against unfair discrimination claims, he said.
“There’s a strong incentive for those trade groups to intervene or file a new lawsuit to get their own injunction,” Nofziger said.
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