With federal regulatory pressure easing, consumer financial services companies are well positioned to pursue growth with fewer potential roadblocks. For in-house counsel and compliance professionals, this shift should not signal obsolescence—it creates an opportunity to lean into smarter, more strategic support for business initiatives.
Deregulation doesn’t mean disregarding compliance; it means right-sizing efforts to match the new environment. Without the weight of aggressive federal oversight, companies may be able to move faster—but staying on course still requires experienced professionals who understand how to translate regulatory wins into business wins.
Some of the following insights emerged from a recent conference session with consumer financial services leaders. The discussion focused on navigating the evolving legal landscape, including the administration’s "pause" on the Consumer Financial Protection Bureau (CFPB) and the broader deregulatory environment at the federal level. Reflecting on that conversation, here’s why compliance remains essential—and how it empowers companies to stay ahead of regulatory developments and thrive.
1. Less Federal Oversight Doesn’t Mean Simpler Compliance
It’s tempting to assume that fewer federal regulations translates into simpler compliance. In reality, a lessening of federal enforcement can increase complexity and uncertainty, depending on the activity and market involved.
Federal consumer financial law remains unchanged, and generally may be enforced by several federal agencies depending on the type of product and service, state attorneys general, and state regulators.
State attorneys general and regulators often step into perceived enforcement gaps, creating a patchwork of state requirements that demand careful attention. Several federal consumer finance laws also allow state AGs to pursue enforcement on their own.
Private litigation risk remains significant. Many consumer finance statutes still enable private rights of action, leaving companies exposed to lawsuits regardless of federal oversight.
Key stakeholders—bank partners, investors, and customers—continue to expect stability. Aggressive moves that sideline compliance can undermine critical relationships.
Bottom line: Experienced compliance leaders help companies move confidently in an evolving environment.
2. Compliance Leadership Enables Smarter, More Sustainable Growth
While some companies might view this moment as an invitation to take bold risks, the savviest ones will recalibrate, strategically balancing innovation with sound risk management. Compliance professionals are uniquely positioned to guide that process.
This is an opportunity to reposition compliance as a business enabler. Professionals can support innovation by identifying ways to achieve business objectives safely, rather than defaulting to “no” or “rubber-stamping” approvals.
Reviewing current compliance structures can uncover efficiencies. Some processes may have been designed to address outdated CFPB priorities rather than core legal requirements. Streamlining can align compliance with today’s business realities. That said, with federal agencies recalibrating, companies may benefit from waiting before making substantial changes.
Proactively identifying emerging risks helps promote readiness. Even if leadership perceives less urgency, preparing for potential regulatory snapbacks, private litigation, or reputational fallout can help keep companies resilient.
Bottom line: Compliance professionals help companies pursue growth while avoiding pitfalls.
3. Compliance Success Often Goes Unseen—But That’s the Point
Effective compliance work prevents problems before they escalate. When companies avoid costly missteps, it’s easy for leadership to overlook the risks that were quietly defused.
To bridge that visibility gap, compliance leaders should communicate their impact in concrete terms. Highlighting “quiet successes”—such as avoiding federal scrutiny or a state attorney general investigation by enhancing disclosures before they became an issue—helps leadership appreciate the value of proactive compliance.
Real-world examples can drive the point home. If competitors face litigation or enforcement for alleged predatory practices, those cases become teachable moments for demonstrating why proactive measures matter.
Framing compliance as business insurance reinforces its value. While leadership need not overcorrect, it’s worth emphasizing that prevention often costs less than damage control.
4. Reframing Compliance Value for Leadership
If leadership questions the need for robust compliance in a deregulatory environment, it may be time to reframe the conversation around business priorities. Tailoring the message to each audience can drive the point home:
For revenue-driven executives: Strong compliance frameworks support long-term growth, building brand value and customer confidence.
For finance teams: Preventing class actions, state fines, and costly remediation efforts avoids unpredictable expenses.
For operations teams: Well-designed compliance processes enhance efficiency, reduce friction, and prevent downstream operational headaches.
Bottom line: Compliance can help drive efficiency and safeguard growth.
5. Regulatory Snapbacks Are Inevitable—Be Ready
History shows that deregulation is rarely permanent. There’s a difference between easing examination and enforcement priorities and fundamentally changing underlying legal obligations. Future election cycles, industry controversies, or economic shifts could quickly reshape enforcement priorities.
When regulators return or re-focus their attention, companies that deprioritized compliance will find themselves at the greatest risk—not just from regulators but also disruption, brand damage, and possible threats of private litigation.
Regulatory bodies often make examples of companies that are perceived as having exploited lax enforcement environments. Even in the absence of formal rule changes, scrutiny can return swiftly, leaving companies flat-footed.
Bottom line: Compliance leaders help position companies to succeed not just in today’s climate, but under whatever regulatory framework emerges next.
Final Thought: Compliance Leadership Protects and Empowers Business
For in-house counsel and compliance professionals, the value proposition remains clear:
Compliance isn’t just about avoiding penalties—it’s about fueling confident growth.
Proactive risk management serves as an insurance policy against costly, shortsighted mistakes.
When leadership doesn’t immediately recognize the value of compliance, reframing the conversation around business priorities can bridge the gap.
Ultimately, companies that treat compliance as a strategic advantage—not just a regulatory burden—will be the ones best positioned to thrive. Legal and compliance leaders play a critical role in making that vision a reality.
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