“CFPB in Long-Haul Battle”
In the days following the elections, when commentators were abuzz with predictions of a quick demise for the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), we were a lone voice in the wilderness warning that such predictions were premature and, indeed, we expected the CFPB to step up its enforcement activities. Events since then have led CFPB prognosticators to follow our lead. At the end of last week, they once again were abuzz – this time with the leak of a memo apparently outlining House Financial Services Committee Chairman Jeb Hensarling’s revamped Financial CHOICE Act, including a plan to gut the CFPB. We believe that this latest development heralds an extended battle to stop the CFPB’s activist agenda, not a quick one, while the Bureau continues to forge ahead and the States prepare to assert a stronger enforcement role.
This Stroock Special Bulletin provides a brief overview of the CHOICE Act 2.0 legislative proposal to defang the Consumer Financial Protection Bureau (CFPB) and our anticipation of continued vigorous enforcement activities by the CFPB and the States.