John Zasada, Compliance Consulting Director, Financial Institutions Group

On Mar. 11, 2021, the Consumer Financial Protection Bureau (CFPB) rescinded the Jan. 24, 2020 Statement of Policy Regarding Prohibition on Abusive Acts or Practices policy statement.

The policy statement indicated the CFPB would decline to seek civil money penalties and disgorgement for certain abusive acts or practices. Given the agency deters abusive practices and compensates harmed consumers using penalties, the CFPB determined the policy statement undermined deterrence and was contrary to the CFPB’s mission of protecting consumers.

Going forward, the CFPB intends to exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act as established by Congress. The rescindment of the policy statement is another clear indication the CFPB under the new Biden administration is going to be very different than under the Trump administration.

To learn more, contact a Doeren Mayhew regulatory compliance specialist.