On May 21, 2020, Allyson Baker was quoted by Reuters on the reemergence of the Consumer Financial Protection Bureau (CFPB) as a regulatory force as the financial stresses of the COVID-19 pandemic have led to a record rise in claims related to banking services.
According to the article, the CFPB directly regulates credit card lending and debt collection practices that have already spurred thousands of complaints and growing confusion over forbearance practices. Risk professionals anticipate that a second wave of coronavirus infections could come at a time when the trillions of dollars of public relief tapers off and private-sector credit demands grow.
"The CFPB is going to be very busy in next coming months when there is an uptick in interest in how consumers are treated in this pandemic," said Baker. “Job loss is so high, there will be missed loan payments and the CFPB will watch how the parties it regulates interact with consumers in these cases.”
The impact will be seen on “mission-critical” concerns for the CFPB, and firms should be aware of “bright red flags” at a time when COVID-19 concerns are highly visible. “The CFPB will be looking at the whole continuum of lending and consumer services,” Baker said.