TEXAS BANKERS ASSOCIATION; RIO BANK, MCALLEN, TEXAS; and AMERICAN BANKERS ASSOCIATION Plaintiffs,
v. CONSUMER FINANCIAL PROTECTION BUREAU; and ROHIT CHOPRA, in his official capacity as Director of the Consumer Financial Protection Bureau, Defendants.
PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION
Pursuant to Federal Rule of Civil Procedure 65 and Local Civil Rule 7.1, Plaintiffsrespectfully request that the Court issue a preliminary injunction enjoining the Final Rule issuedby the Consumer Financial Protection Bureau (“CFPB”) on March 30, 2023, (“Final Rule” or“Rule”) to amend Regulation B to implement changes to the Equal Credit Opportunity Act(“ECOA”) made by § 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act(“Dodd-Frank Act”). As set forth in the accompanying Memorandum in Support of Plaintiffs’Motion for Preliminary Injunction, Plaintiffs meet the four-part balancing test from Winter v.Natural Resources Defense Council, 555 U.S. 7 (2008), for obtaining a preliminary injunction.That is so, in part, because the Final Rule is invalid under Fifth Circuit law. See Cmty. Fin. Servs.Ass’n of Am. v. CFPB, 51 F.4th 616, 643 (5th Cir. 2022), certiorari granted, U.S. 22–448 (Feb.27, 2023). Thus, absent an injunction, Plaintiffs (and their members) would be forced to spendmillions of dollars preparing to comply with an invalid rule—such unrecoverable costs constituteirreparable harm. Restaurant Law Center v. Dept. of Labor, 66 F.4th 593, 597 (5th Cir. 2023).
Plaintiffs ask that the injunction remain in place until the Supreme Court’s resolution ofthe constitutionality of the CFPB’s self-funding scheme in Community Financial. The injunctionrequested would shield Plaintiffs from unrecoverable compliance costs pursuant to an invalidRule—especially when there is a substantial likelihood that the Supreme Court will agree with theFifth Circuit that the CFPB’s funding mechanism violates the appropriations clause in Article I,Section 9 of the Constitution, and that a Rule promulgated at the time the Bureau was receivingsuch funding is, in fact, unconstitutional. Plaintiffs thus request that the Court grant their Motionand enjoin the Final Rule, along with staying both the compliance deadlines in the Rule and thecorresponding timeframes for preparing to follow the Rule.
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