Trends & Predictions for the Consumer Financial Protection Bureau 2017 - 2018

The Consumer Financial Protection Bureau, created as part of the Dodd-Frank Wall Street reforms in response to the recession of 2007-2008, has been credited with issuing regulations that have cracked down on predatory lending, abusive consumer debt litigation, and unsustainable banking practices. However, it has also been criticized for overburdening the financial sector, and in 2016 a D.C. Circuit Court of Appeals found the structure of the Bureau - whose appointed director is not subject to removal by the President for any reason other than inefficiency, neglect of duty, or malfeasance - to be unconstitutional. A rehearing was granted, and a decision in the case is still pending. In the meantime, the Bureau still faces other challenges, including opposition by members of the new administration, challenges to various CFPB orders against supervised financial entities, and proposed legislation to undo the Arbitration Rule (which imposed limits on common “mandatory arbitration” clauses in financial services contracts).

While awaiting the outcome of these challenges, the CFPB is continuing to provide rulemaking guidance around on a variety of topics, including, credit reporting, prepaid financial products, payday lending, and more. In addition, it continues to seek enforcement actions, although the number has decreased since the 2016 election.

In this program, Hudson Cook Partners Michael Benoit and Trisha Cacciola will discuss the CFPB’s authority, recent trends in CFPB rulemaking and enforcement actions, the predicted potential outcomes of pending challenges, and best practices for advising clients in the banking and financial services industry and concerned legislators.

Learning Objectives:

1. Discuss pending challenges to CFPB rulemaking and enforcement
2. Review current CFPB rulemaking and enforcement actions
3. Consider predicted changes to CFPB authority and practices, and what that means for your clients