The emergence of the Consumer Financial Protection Bureau (CFPB) as a force in the financial services industry is creating waves, from enforcement actions to compliance management. Along with the U.S. Department of Justice (DOJ) and the various regulatory agencies, the CFPB is focusing more and more on a broader environment of consumer protection among banks and other financial services providers.
Banks are finding that the involvement of the CFPB is translating into greater scrutiny of not just traditional brick-and-mortar institutions but also more specialized areas, including debt collection and student lending. Recent rule changes to HMDA data collection and reporting are likely to further extend CFPB’s enforcement efforts.
In response, banks must make the shift from managing discrete aspects of compliance, such as discrimination and community reinvestment, to taking a more holistic and comprehensive view of consumer protection.