On January 5, 2021, the Consumer Financial Protection Bureau (CFPB) Taskforce on Federal Consumer Financial Law (Taskforce) issued a nearly 900-page final report (Report) making extensive recommendations for legislative and regulatory reform, enactment, and adoption of new initiatives in the financial marketplace. In proposing changes to the existing legal and regulatory framework, the Report is centered around five key principles: (1) consumer protection; (2) information and education; (3) competition and innovation; (4) regulatory modernization and flexibility; and (5) inclusion and access.
In the second installment of the Consumer Financial Services Litigation Webinar Series, Seyfarth attorneys offered predictions on what financial services companies might expect from the CFPB in the months ahead as a result of the Taskforce Report. Specifically, Seyfarth attorneys provided a deeper dive into the following:
- The Background of the Taskforce, its Report and prior studies that provided the starting point and reasons for the current consumer financial services regulatory review.
- Status of a recent legal challenge to the Taskforce and its Report pending in the Massachusetts federal court.
- Key recommendations, including:
- Focusing enforcement decisions on the “lodestar” of consumer harm;
- Providing public transparency as to how enforcement decisions are made;
- Rethinking Regulation Z’s required disclosures to better inform consumers;
- Increasing access to credit for more consumers;
- Providing the CFPB flexibility to determine that compliance with particular federal and state regulations during times of emergency would be impracticable.
- Predictions for the scope of reliance and magnitude of the Taskforce Report given the change to the Biden-Harris Administration and nomination of a new CFPB Director.
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Please see the webinar recording and presentation below for the March 25th Webinar: “Deeper Dive into the CFPB Taskforce Report Recommendations and Q&A Session”
Consumer Financial Services Webinar Series
Given the magnitude of the potential changes ahead, Seyfarth has developed a webinar series designed to convey strategies and best practices to help you to ensure that your company and internal clients are prepared for what is ahead. To stay abreast of these changes, please subscribe to our mailing to list.