FOR IMMEDIATE RELEASE
April 3, 2023
William Pierre-Louis, Jr.
New CFPB Guidance Defines Abusive Industry Conduct
Post-Financial Crisis Law Gave CFPB the Authority to Identify and End Abusive Conduct Against Consumers
Washington, D.C. — The Consumer Financial Protection Bureau (CFPB) today issued a policy statement on how it defines prohibited abusive conduct against consumers.
“The financial crisis revealed how rampant abuse against American consumers undercuts financial stability, not only for individuals but for the entire economy. With today’s policy statement, the CFPB is saying to industry: ‘here are the clear lines; we will take action if you try to skirt consumer protection laws,'” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform Education Fund.” “The guidance should help enforce fair dealing in financial products and services that makes it easier for people to build financial security for themselves and their families.”
Speaking about the CFPB’s motivation for issuing such guidance on abusive conduct, CFPB Director Rohit Chopra said that “high-priced law firms should not be the only ones making sense of what this term means.”
After the collapse of Silicon Valley Bank and Signature bank, and the role that deregulation played in the process, it is even more clear how important effective financial industry oversight is to the public interest.