Venable of counsel Jonathan Pompan was quoted in The Blog of The Legal Times on July 20, 2012 on the first anniversary of the Consumer Financial Protection Bureau (CFPB). On July 21, 2011, the CFPB opened for business. The Dodd-Frank Wall Street Reform and Consumer Protection Act established the CFPB to regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws. The Dodd-Frank Act transferred to the Bureau the consumer financial protection functions formerly carried out by the Federal banking agencies, as well as certain authorities formerly carried out by the Department of Housing and Urban Development (HUD) and the Federal Trade Commission (FTC).
Commenting on the CFPB’s first year, Pompan said, “They're not messing around,” adding, “A year ago, we said there was a new sheriff in town. It's not just a sheriff - it's an army.” While the CFPB has been a political target, it has made considerable progress in executing on its mission, growing its staff, rolling out regulatory proposals, launching investigations, and enforcement.
Speaking about the CFPB’s multifaceted approach to drawing attention to consumer protection issues in nonbank areas such as prepaid cards, mortgages, small dollar lending, money transmission, private student loans, credit reporting agencies, debt relief services, and debt collection Pompan said, the CFPB's “consistency in approach rivals a political campaign.” Pompan added, the CFPB has embraced “the power of the bully pulpit,” and noted that “non-rulemaking guidance and other pronouncements seem to be far more prevalent than actual substantive rules.”
On the CFPB’s approach to business, Pompan noted that the CFPB has been receptive to collecting input from industry stakeholders on relevant policy matters, adding “Whether they'll actually incorporate it into the final decision remains to be seen.”