By Aaron Nicodemus2021-03-15T20:56:00+00:00
The Consumer Financial Protection Bureau (CFPB) last week reversed a Trump administration policy on how it assesses and punishes abusive practices in the financial services industry.
“Going forward, the CFPB intends to exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act as established by Congress,” the agency said in a press release Thursday.
The announcement rescinds a January 2020 policy statement on the abusiveness standard issued by former CFPB Director Kathy Kraninger. In that statement, Kraninger said “uncertainty remains as to the scope and meaning of abusiveness” as defined in Dodd-Frank, and that applying the abusiveness standard in supervisory or enforcement actions “may impede or deter the provision of otherwise lawful financial products or services that could be beneficial to consumers.”