The short history of the Consumer Financial Protection Bureau (CFPB) has resulted in a wild ride for the financial sector with respect to rulemaking and enforcement of consumer finance laws. Turbulent times for the CFPB and industry may continue, in light of the possibility of a change in administration following the 2020 presidential election coupled with continued economic fallout of the COVID pandemic.
The U.S. Supreme Court ruled earlier this year that a President may fire a CFPB director at will. Consequently, Trump-appointed and current CFPB Director Kathleen Kraninger almost certainly would be replaced if former Vice President Joe Biden is elected President. Given the uncertainty of two very different agendas, what can businesses that operate under the purview of federal regulation expect going forward in terms of enforcement, rulemaking, and supervision?