ABA Welcomes Joint Stipulation to Dismiss Appeal in CFPB Exam Manual Litigation

ABA President and CEO Rob Nichols issued the following statement after the CFPB joined ABA and other co-plaintiffs in a joint stipulation to dismiss the Bureau’s appeal in the UDAAP manual case: 

“We welcome today’s joint stipulation with the CFPB to dismiss its appeal in the UDAAP manual case, which reaffirms that the Bureau exceeded its statutory authority when it 'updated' its exam manual and announced an open-ended and novel power to examine banks for alleged discriminatory conduct. We strongly support the fair enforcement of nondiscrimination laws, but the Bureau’s extraordinary expansion of its statutory authority crossed the line. We appreciate that the Bureau recognizes this and has agreed to dismiss its appeal with prejudice in this case.”

Additional Background

ABA and its co-plaintiffs — the Texas Bankers Association, U.S. Chamber of Commerce, Longview Chamber of Commerce, Consumer Bankers Association, Independent Bankers Association of Texas, and Texas Association of Business — previously won our legal challenge in Tyler, Texas in 2023 after the court ruled that CFPB’s UDAAP manual update exceeds the Bureau’s statutory authority to regulate “unfair” acts or practices under the Dodd-Frank Act. The court also ruled that the CFPB exceeded its statutory authority by using disparate impact analysis to establish unfair treatment under the UDAAP manual.