Breaking: RBFC granted Stay from 1071 for its members

Major news in the case Revenue Based Finance Coalition v Consumer Financial Protection Bureau, et al.. Judge David Leibowitz from the Southern District of Florida has just granted the RBFC's motion to Stay the 1071 rule as to RBFC and its members. This is a very critical decision for the RBFC and all of its members because, with this motion, they don't have to meet the July 18th deadline when commercial lenders of all sorts across the nation are supposed to be in compliance.

Any lender/funder not part of the RBFC is not included in this Stay and is at risk if they do not comply with 1071 by the deadline. Do seek legal advice, though, because other rulings and discussions about the enforcement of 1071 have come out of other cases, such as the below-mentioned Texas Bankers Association v CFPB case.

Here are a few snippets from the case:

"Plaintiff’s Unopposed Motion to Stay the Section 1071 Rule and Holding Proceedings in Abeyance [ECF No. 72] is GRANTED. The Court hereby stays the Section 1071 Rule and tolls the Rule’s compliance deadlines with respect to Plaintiff and its members for the length of time that the Fifth Circuit stay order in Tex. Bankers Ass’n v. CFPB, No. 24-40705, ECF No. 134 (5th Cir. Feb. 7, 2025), is in effect, subject to modification at any time by the Court."

"The parties shall provide status reports to the Court every 60 days on the status of the Fifth Circuit case and the rulemaking process. Upon the stay being lifted in Tex. Bankers Ass’n, the parties shall notify the Court within seven (7) days on how they wish to proceed."

This is a developing story, and for further information you may contact the RBFC by visiting their website.