provided the possibility of protracted litigation about the CFPB’s authority over TLEs, it isn’t unthinkable that the CFPB will assert that authority into the future that is near litigate the matter to finality; the CFPB can’t be counted on to delay doing this until this has determined its financial research with regards to payday financing (for which TLEs is not anticipated to hurry to cooperate) or until litigation throughout the recess appointment of Director Cordray happens to be fixed.
TLEs, anticipating action that is such will need to think about two distinct strategic reactions.
Regarding the one hand, hoping to protect by themselves from direct attacks because of the CFPB beneath the “unfair” or “abusive” standards, TLEs might well amend their company techniques to create them into line with all the demands of federal consumer-protection laws. Numerous TLEs have previously done this. It continues to be a question that is open and also to what extent the CFPB may look for to hire state-law violations as a predicate for UDAAP claims. Continue reading →