Venable partner Jonathan Pompan was quoted in a May 6, 2016 Green Sheet article on the latest proposals from the Consumer Financial Protection Bureau (CFPB). Along with the European Union, the CFPB is proposing regulations aimed at protecting the rights of individuals and small businesses but would restrict US fintech firms from trading in select market.
"The CFPB may be thought of as the 'consumer bureau,' but there are good reasons why anyone in commercial lending should be paying attention to the CFPB," said Pompan. "For one the bureau takes a very broad view of its jurisdiction and the markets it regulates; on top of that, many of the statutes it enforces ? including prohibitions of unfair, deceptive, and abusive acts or practices and the Equal Credit Opportunity Act ? give the agency a toehold into certain commercial lending transactions."
Pompan added, "Fintech marketplaces are a great example of how consumer and commercial loans are offered sometimes at almost the same time…This can result in a scenario where the CFPB's scrutiny on the consumer side can cascade to an impact on the commercial side."