Consumer-Watchdog Anti-Discrimination Effort Dealt a Blow by U.S. Judge

A U.S. federal judge has ruled in favor of financial industry groups, stating that the U.S. Consumer Financial Protection Bureau (CFPB) does not have broad authority to address discriminatory banking practices. The judge's ruling prevents the CFPB from enforcing its anti-discrimination policy against the trade groups' members. The industry groups argued that Congress had not authorized the agency to combat discrimination, and the judge agreed, stating that the Dodd-Frank Act treats discrimination and unfairness as distinct concepts. The CFPB is reviewing the decision and considering options for an appeal.