In a momentous turn of events, the Consumer Financial Protection Bureau (CFPB) has been given the all-clear to increase enforcement and uphold numerous key regulations under legal scrutiny. This development follows the ruling by the US Supreme Court that the spending organization of the CFPB is constitutional. As a result, the Bureau is in a position to shift its concentration towards enforcement, an area in which little public activity has been detected in recent times, without the imminent risk of a court verdict threatening its dissolution. For companies in the regulatory crosshairs, the possibility of contesting agency actions in court remains an alternative.
However, this newfound stability is likely to come with its share of challenges. The CFPB now faces the considerable task of defending in the legal arena a number of potentially contentious rules. Among the most prominent of these disputed regulations are the cap imposed on credit card late fees, the practice of collecting demographic data related to small business lending, and impending limitations to overdraft fee programs.
It is worth noting that while the Supreme Court’s decision undeniably grants the CFPB a certain level of operational security, companies remain entirely within their rights to challenge the agency’s activities in court. Consequently, while the path ahead for the CFPB may be devoid of the immediate risk of dissolution, the road to implementing critical regulations and reinforcing enforcement is likely to be paved with continued legal contention.
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