On August 12, 2021, Allyson Baker was quoted by Reuters on what to expect from the U.S. Consumer Financial Protection Bureau (CFPB) as it is transformed under the new administration and pending arrival of Rohit Chopra, a former assistant director of CFPB and member of the Federal Trade Commission (FTC) who is now awaiting Senate confirmation as CFPB director.
According to the article, the CFPB will be resuming the role it had prior to the Trump administration as a major new force in retail banking regulation. The agency has issued a series of alerts and reports documenting a surge in consumer-finance abuses in areas such as lending, debt collection, student loan practices, and the disbursement of relief funds.
Baker said the agency has been “recharged” by its new leadership and the Supreme Court’s rejection of a challenge to its constitutionality. Its ambitious agenda will require firms to spend more time preparing to undergo examinations and avert potential enforcement actions, by reviewing and documenting their efforts to serve customers during the pandemic.
The staggered ending of relief programs has added to uncertainty. Some protections are ending, while others have been extended, most notably the student loan payment moratorium, which was extended to January 31 of next year.
“The bureau is looking closely at how consumers have been treated amid the confusion and uncertainty everyone faced,” said Baker. “There are direct concerns for anybody with consumer facing business, either in demand for services that arose during the pandemic or in existing credit and how it changed to reflect the COVID-19 mandates.”
Click here to access the article.