Consumer Protection Compliance Remains Crucial in Spite of CFPB Work Stoppage

The new administration has recently taken steps to reduce or even eliminate the role of the Consumer Financial Protection Bureau (CFPB) in the supervision of certain financial institutions and the enforcement of federal consumer protection statutes. 

While these actions represent a significant departure from the prior administration’s approach to consumer protection, and while a less active CFPB will likely reduce the federal regulatory burden on entities that have been subject to CFPB supervision, consumer financial protection enforcement is not likely to disappear. Instead, it will likely shift to state attorneys general (AG), which had already been active, along with the CFPB, in consumer protection.  This means entities that provide products or services in the consumer finance space will need to continue to be attentive to federal consumer protection statutes (such as the Consumer Financial Protection Act) that can be enforced by states, to state consumer protection statutes, and to state AG inquiries.

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