The
resolution, which passed with support from just five Democrats
in the U.S. Senate in October and the Republican-controlled
House of Representatives earlier this month, nullified a CFPB
rule that required financial institutions to collect and report
credit application data for small businesses to the bureau.
The CFPB rule was already facing legal challenges. In July, a
federal court had ordered the CFPB not to implement the rule
until a related pending case is resolved.
"If enacted, this resolution would harm all those that stand to
benefit from expanded transparency and accountability," Biden
said in a statement released by the White House.
The Democratic U.S. president accused Republicans of "hampering
efforts to promote transparency and accountability in small
business lending" and "siding with big banks and corporations
over the needs of small business owners."
The top U.S. government agency for consumer financial protection
had unveiled its long-awaited final rule for data collection on
loans to small business in March and said the rule would help
combat discrimination and promote investment.
The legal mandate for the rule is as old as the CFPB itself,
having been created under the 2010 Dodd-Frank Wall Street reform
legislation in the wake of the global financial crisis.
"This (CFPB) rule implements a long-overdue piece of the
Dodd-Frank Wall Street Reform and Consumer Protection Act,"
Biden said in his statement on Tuesday.
Many Republicans have opposed the CFPB from the start, saying it
wields too much power and burdens banks and other lenders with
unnecessary red tape. Many Democrats and consumer watchdog
advocates say the CFPB is key to protecting consumers from
deceptive and abusive practices by lenders and debt collectors.
(Reporting by Kanishka Singh in Washington; Editing by Leslie
Adler and Aurora Ellis)
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