CFPB Ramping Up Enforcement Efforts with SCOTUS Decision in Rear View

The Consumer Financial Protection Bureau (CFPB) recently began to revive its enforcement efforts, as the U.S. Supreme Court (SCOTUS) has mostly settled questions regarding the bureau’s funding after the May decision in CFPB v. Community Financial Services Association of America. The pace of enforcement, however, is still slower under CFPB Director Rohit Chopra than under previous administrations.

“Our enforcement efforts not only protect consumers but also help to create a fair marketplace where law-abiding companies can thrive without having to compete against those who cut corners or break rules for unfair advantage,” a CFPB spokesperson said, according to Bloomberg Law.

Since May 17, the CFPB has filed 11 enforcement actions, and has resolved or won court victories in seven current actions since SCOTUS’ decision. The Bureau has also been hiring more employees, including enforcement attorneys.

The CFPB has focused more on supervision and larger, impactful targets, which many companies likely understand. There’s also a sense that the Bureau is trying to pursue more aggressive legal theories that companies are willing to give pushback on.

“After a decade, enhancements and improvements are likely netting a degree of value to the organizations and the consumer marketplace,” said Jonathan Pomona, the chair of Venable LLP’s consumer financial services practice group.

Even with additional enforcement and supervision actions, the numbers aren’t as high as some agency watchers had anticipated. Some defendants are still saying that the CFPB isn’t properly funded, but the Bureau has explained that getting a lawsuit ready can take longer than getting a settlement done.