By a slender 50-48 vote alongside occasion strains, Rohit Chopra was confirmed yesterday by the U.S. Senate to grow to be the Director of the Client Monetary Safety Bureau. Chopra beforehand served as the Bureau’s assistant director and was its first pupil mortgage ombudsman. Most not too long ago, Chopra served as a commissioner of the Federal Commerce Fee for the previous three years the place he conveyed his penchant for aggressive enforcement of bigger institutional violators and advocated for financial aid from violators outdoors of the authority supplied beneath Part 13(b) of the FTC Act (we beforehand mentioned Part 13(b) in earlier Client Finance & FinTech Blogs right here, here, and here).
Chopra’s affirmation will undoubtedly solidify the Bureau’s extra aggressive oversight of monetary providers firms than occurred beneath the bureau’s earlier director beneath the Trump administration, Kathy Kraninger. Such extra aggressive oversight has already been occurring over the previous few months beneath the management of the Bureau’s appearing director, Dave Uejio (we mentioned the Bureau’s newest enforcement posture in earlier Client Finance & FinTech Weblog posts here, here, and here).
Placing It Into Observe: Among the many issues, we are able to anticipate to see the next from the Bureau beneath Director Chopra’s management:
A excessive probability of a return to “regulation by enforcement,” which frequently left the monetary providers trade unable to find out precisely what kind of actions are permissible and what actions usually are not permissible, and sometimes resulted within the CFPB offering rulings on the regulation that have been inconsistent with the plain language of shopper safety legal guidelines, together with RESPA specifically.
Extra aggressive enforcement actions, together with actions in opposition to firms that don’t deal immediately with shoppers in any respect for aiding and abetting different events within the conduct of unfair, misleading or abusive practices. For instance, the CFPB not too long ago sued a software program firm that it alleges facilitated illegal conduct by credit-repair companies, although it didn’t sue any of the companies truly participating within the illegal conduct (beforehand coated in a Client Finance & FinTech Weblog submit here).
Actions in opposition to company officers who oversee or perform an organization’s allegedly illegal conduct.
Extra rule making. The CFPB has already proposed this yr knowledge assortment necessities in reference to small enterprise loans (beforehand coated in a Client Finance & FinTech Weblog submit here).