CFPB Loosens Enforcement Under Mulvaney

Consumer Bureau Dropping Lawsuits but States Are Filling the Gap, Lawyers Say
– S&P Global

Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, was quoted by S&P Global in an article about the Consumer Financial Protection Bureau’s decreased enforcement activity under its new director.

According to the publication, the CFPB was an active litigant under former Director Richard Cordray. Newly appointed Mick Mulvaney, however, has instituted a 30-day freeze on hiring, new rules, regulations and civil money penalties. Lawyers representing financial institutions said the CFPB has discontinued investigations and dropped enforcement actions following Mulvaney’s appointment.

“We had a rather significant enforcement matter that went into suspension mode when Mulvaney took over because of some kind of directive that happened at the CFPB,” explained Gottlieb. “It was resolved with nothing.”

Read the article here