Hello, welcome back to D Bank tv.
I'm Sean Murray, and today we're gonna
talk about a few different things.
First, let's talk about Section 10 71.
People have heard that it's going away,
but is it first, what is Section 10 71?
For many of you who are not familiar, the Wall Street Reform
and Consumer Protection Act
of 2010 created an entire new regulator,
a federal regulator called the CFPB,
the Consumer Financial Protection Bureau.
And as part of that, it gave the CFPB the power
to regulate an aspect of small business lending
that includes the MCA product.
Now, what it does, it,
it mandates every company collecting data from every single
applicant that they get
and report it to the federal government.
People have been dreading this for a long time
because, as I mentioned, the law passed in 2010.
And guess what? It's only now just about
to go into effect except not so fast.
Recently, the Senate voted to overturn the rules
that the CFPB created in order to comply with the law.
They said, we do not want to have
small business lenders comply with the rules created
by the CFPB to comply
with Section 10 71 and the House.
The house did the same thing.
They also do not want people to have to comply
with the rules, but they were very specific about the rules.
They don't believe that people should have
to follow the rules that the CFPB created.
Mind you, these rules are long 888 pages worth of rules
that have been put out there,
and you may have read about onie bank.com.
Those are the rules that Congress does not
want people to follow.
They feel that it's too burdensome.
However, it does not invalidate.
Congress has not invalidated the CFBs need
to create rules by law.
The ccf, PB has to create rules
to collect data from small business lenders.
And what Congress has done is just invalidated the
rules that they've created.
What they want to do is send the CFPB back
to the drawing board to create all new rules, which is kind
of crazy because it took 13 years to create those rules
to begin with, but also not so fast.
Even though Congress passed this particular resolution
to invalidate the rules on a bipartisan basis,
president Biden has sworn
that he will veto what they wanted.
So in all likelihood, this particular resolution will not go
through as planned,
even though Congress voted for it to happen.
But even if Biden does not use his veto,
all Congress has opted to do is to invalidate the rules
that the CFPB has created to comply with the law,
and it will force them to create all new rules.
So if you are hoping that there will be no
Dis uh, no, uh, data collection rules
that will ever happen, you'd be sadly mistaken.
There will be some type of rules,
but given what is taking place, there might be some delay.
That's Section 10 71.
Pay attention to it because it's going to affect you.