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Consumer Federation of America on CFPB & FTC During Trump Admin

Dec 12, 2024 at 12:00 AM

In today's podcast episode, we delve into the significant implications for banks and consumer financial services providers. We are joined by Erin Witte and Adam Rust from CFA, who bring valuable insights. The focus initially turns to the CFPB and FTC regulations that might be finalized during the lame duck session of Congress. There is hope that the FTC will finalize its "junk fee reg" for "all-in" pricing and that the CFPB will finalize various rules such as those related to checking account overdraft fees, non-bank payment providers, and medical debt. However, there is a risk that these rules could be overruled by Congress under the Congressional Review Act.

Final Regs Challenged in Circuit Courts

We then discuss the final regs promulgated by the FTC and CFPB that have been challenged in the Circuit Courts of Appeal. For the FTC, this includes the CARS Rule and the "Click-to-Cancel" Rule, which has faced challenges in four circuit courts. These rules impose important restrictions and requirements on various business practices.

CFPB Final Regs and New Strategies

We explore the status of many CFPB final regs and the uncertainty surrounding a new CFPB's strategy. Rules like the $8 credit card late fee rule, data collection reg for small business loans, open-banking reg, Buy-Now, Pay-Later interpretive rule, and Earned Wage Access interpretive rule are all in play. There is doubt about whether the new director will seek to repeal or amend these regs or change the CFPB's position in litigation. Repealing or changing regs requires following the Administrative Procedure Act, and such actions could be challenged in court.

CFPB's Final Report on Auto Finance

The CFS Reps express hope that the CFPB will issue its final report on the information received from auto finance companies in response to market monitoring orders. While this may not lead to new proposed regulations in the next four years, it could potentially instigate enforcement actions by state AGs.

Consumer Protection in the New Era

Just as during the first Trump presidency, the CFA Reps believe that state AGs, state departments of banking, and consumer protection agencies will play a significant role in filling any consumer protection void at the CFPB. There is also an expectation of an increase in private civil litigation, including class actions. Alan Kaplinsky, as the Senior Counsel and former chair of the Consumer Financial Services Group, guides the discussion with his expertise.