ICYMI: In March, Reuters reported that the Consumer Financial Protection Bureau dropped a pending lawsuit against a payday loan collector, and Director Mick Mulvaney is considering whether the agency should move forward with 3 similar cases. The news came from an attorney who represents the lender. Bureau representatives declined to comment further.
The CFPB quietly backing away from payday lending litigation? A year ago, this story might have seemed like an April Fool’s joke. It goes to show how much the Bureau has changed since the departure of Richard Cordray (who approved the cases shortly before resigning last November). True to the new Director’s stated intentions, the CFPB appears to be discarding its former “governing philosophy of pushing the envelope” through aggressive prosecution, and embracing a more agnostic, case-by-case approach to enforcement.
Only time will tell if we’re witnessing a precedent-setting directorship, or if the Mulvaney Era turns out to be a momentary digression that causes the pendulum to swing back harder in the other direction.
In either scenario, there’s a reason lenders aren’t popping champagne, turning off their compliance management systems, and using the reclaimed processing power to mine bitcoin instead: the CFPB is just one regulator among many. Changes may be afoot at the Bureau but that doesn’t mean lenders are off the hook for compliance. Quite the opposite, in fact. From the Federal Trade Commission to the Justice Department to state attorneys general, there’s an alphabet soup of institutions poised to fill any vacuum left by changes at the CFPB.
With all that in mind, we invite you to join the American Financial Services Association and Compli for Regulatory Alphabet Soup: As the CFPB evolves, who’s watching lenders now? Sign up for our webinar on Wednesday, April 18th, 2018, from 11am–12pm, to hear from compliance industry veterans Michael Benoit, Chairman of Hudson Cook and Brian Larson, Director of Sales at Compli. Michael and will take you through what you need to know as the alphabet soup of regulators line up to keep the fuel on the regulatory fire.