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January 25, 2021 • Issue 21:01:02

Washington outlook for 2021

Trump Administration. In 2015, the bureau's most active
year under President Obama, nearly $6 billion was deliv-
ered to consumers from settlements with hundreds of busi-
nesses; in 2020, it collected 34 fines from businesses totaling
$34 million, according to public records.

One of the biggest blows to the CFPB was meted out last
summer by a U.S. Supreme Court, which ruled the CFPB's
leadership structure—a lone director appointed by the
president to a five-year term and cannot be fired without
cause—was unconstitutional. The agency averted a fatal
blow, however, when the same court rejected legal chal-
lenges to the constitutionality of its existence.

In a wish list sent to President-elect Biden, Rep. Maxine Wa-
ters, D-Calif., chair of the House Committee on Financial
Services, called for replacing CFPB Director Kathy Kran-
By Patti Murphy inger with an agency chief who moves to "aggressively pro-
ProScribes Inc. tect consumers."

t's a new year with a new Congress and new Among other things, Waters said the new CFPB chief
President. And the question on many minds is what should be instructed to "immediately begin work to replace
these changes on the federal level could mean for the 'Payday, Vehicle Title and Certain High-Cost Install-
I financial services generally and merchant services in ment Loans' rule," which was put in place last year and was
particular. "Given that the Senate will be closely divided a watered-down version of a rule crafted under the Obama
between Republicans and Democrats, legislative reform Administration that required lenders to assess borrowers'
may be difficult and time-consuming to advance," a group "ability to repay" loans.
of attorneys with the firm Pillsbury Winthrop Shaw Regulatory power struggle over fintechs
Pittman LLP, wrote in a recent brief. "However, as per
the old Washington adage that 'personnel is policy,' Biden Meanwhile, a potential power struggle is brewing over
appointees for key regulatory positions will have a large oversight of financial technology firms. The Office of the
impact on financial services." Comptroller of the Currency, a Treasury Department agen-
cy that regulates nationally chartered banks, tried to break
Scott Talbott, senior vice president for government rela-
tions at the Electronic Transactions Association, summed
up the scenario this way: "We expect to see increased over-
sight of the industry, which could manifest as increased Contributed articles inside by:
regulatory headwinds."

Stronger CFPB
Marc Beauchamp ..................................................................................24
Some increased oversight could come from the Consumer Roger McNamara ..................................................................................26
Financial Protection Bureau. A hallmark of the Dodd-Frank
Act, the CFPB was created to protect consumers from pred- TOC on page 3
atory lenders and unscrupulous providers of other finan-
cial services. But it has been on life support for much of the

Continued on page 22