CFPB Enforcement Action Against Payday Lender Has Broad Implications for Financial Institutions
17 July 2014
Mayer Brown Legal Update
The US Consumer Financial Protection Bureau (CFPB) has entered a consent order with a payday lender for debt collection practices that the CFPB alleged violated the Dodd-Frank Act’s prohibition on unfair, deceptive or abusive acts or practices. The $10 million settlement casts a significant shadow, not just over payday lenders, but also—and likely most significantly—over financial institutions that collect their own debts or rely on service providers to serve their customers, and that continue to struggle with the uncertainty caused by the CFPB’s regulation by enforcement.