Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, was quoted by American Banker in an article about narrowing the scope of “abusive” practices for consumer protection.
The publication noted that Consumer Financial Protection Bureau Director Mick Mulvaney’s decision to develop a clearer definition of “abusive” practices is something that has already been done. In the past, the CFPB has created a standard by engaging in enforcement actions, so Mulvaney’s choice will only taper the standard further.
“Crafting a rulemaking on what constitutes ‘abusive’ is another nail in the coffin of regulation by enforcement,” said Gottlieb.
Read the article here (subscription required).