Judges Rule Against Consumer-Watchdog Anti-Discrimination Efforts

A federal judge has ruled against the U.S. Consumer Financial Protection Bureau (CFPB), stating that the agency does not have broad authority to address discriminatory banking practices. The ruling, which came as a result of a lawsuit filed by industry groups, prevents the CFPB from enforcing its anti-discrimination policy against the trade groups' members. The CFPB is reviewing the decision and considering options for an appeal. The industry groups argued that the CFPB unlawfully expanded its authority beyond existing fair lending laws, and the judge ruled in their favor. The CFPB had announced earlier this year that it would examine financial institutions' practices for illegal discrimination as part of its broader mandate.