The bureau’s enforcement director said it has “much more to do” on its enforcement priorities.
11/02/2023 1:30 P.M.
3 minute read
Since early October, D.C insiders have heard buzz that the Consumer Financial Protection Bureau plans to hire dozens more enforcement attorneys to bolster its efforts in regulating consumer data sharing and predatory lending practices, American Banker reported. (A subscription may be required.)
Since then, the bureau’s Enforcement Director Eric Halperin affirmed those priorities in remarks at the National Consumer Law Center’s Consumer Rights Litigation Conference, while acknowledging challenges at the bureau as well.
“The last two years have been exciting ones for CFPB enforcement, even as we’ve faced down a challenge to the constitutionality of the CFPB’s funding and authority, and, fundamentally, to our mission,” Halperin said. “Of course, this is not the first time the CFPB has faced such challenges. But those challenges have never deterred us.”
Halperin reviewed the bureau’s recent focus on “junk fees” and actions in the credit repair industry.
“While I am proud of what we’ve accomplished, I want to emphasize: We have much more to do,” Halperin said, adding that the bureau is “concentrating our resources on addressing what we see as the biggest sources of consumer harm. This includes focusing on the largest market actors, whose conduct affects significant numbers of consumers.”
To advance its enforcement priorities, the bureau will continue to work closely with state and federal government partners and plans to add about 75 new full-time employees in the enforcement office.
Halperin said the CFPB’s priorities include the consumer data marketplace and how consumers can track use of their data, including at credit reporting agencies; automated decisions in investigating and resolving disputes; and using its authority over unfair, deceptive and abusive acts and practices used in predatory lending.
ACA’s Take
ACA International has closely tracked and is advocating for the industry on bureau priorities such as “junk fees” and consumer data.
Earlier this month, a series of actions on “junk fees” came together at the federal level and with a new state law in California, ACA previously reported.
The Federal Trade Commission recently issued a proposed rule on fees, and the CFPB issued an advisory opinion on fees charged by banks for customer service as well as a special edition of its Supervisory Highlights report focused on its efforts to stop “junk fees.”
ACA continues to advocate with regulators and Congress that the term “junk fee” does not have a legal definition and shouldn’t be used to classify all fees in the debt collection and financial services industries.
ACA is also considering comments on the CFPB’s Notice of Proposed Rulemaking on data sharing, which seeks to standardize access to data and its terms, fostering a more level playing field for both established and emerging financial institutions, ACA previously reported. According to a client alert from Brownstein Hyatt Farber Schreck LLP, the proposal will have wide impacts on financial institutions and third parties if finalized.
To follow ACA’s advocacy work on these issues and more, make sure you’re subscribed to ACA Daily and registered for the free members only ACA Huddle held Wednesdays at 11 a.m. CST and featuring real-time updates on regulatory, federal/state advocacy, and compliance issues discussed by industry experts.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA profile when logged in to acainternational.org to receive updates on the ACA Huddle.