Benjamin K. Olson profiled in Scotsman Guide interview, “The jury is still out on the new CFPB”
Scotsman GuideBenjamin K. Olson
Benjamin K. Olson was profiled on October 19, 2018 in a Scotsman Guide interview, “The jury is still out on the new CFPB,” where he discussed the bureau’s change in focus under its new leadership and whether the agency’s era of regulation by enforcement is coming to an end.
Is the era of regulation by enforcement over?
Regulation by enforcement is somewhat in the eye of the beholder. To me, it means penalizing a regulated entity for conduct that they engaged in that was not specifically prohibited by written law. As to whether that is over, that is also in the eye of the beholder. The bureau has continued to make use of its authority to prohibit unfair or deceptive acts or practices (UDAP).
That is something that under prior leadership was subject to a lot of criticism because there is some amount of subjectivity as to what conduct rises to the level of deceptive and unfair. To the extent that the bureau continues to use that authority, some would view that as regulation by enforcement. But, in other ways, the bureau has made clear that they will not be enforcing regulatory guidance as if it were law. From that perspective, that is a reduction in regulation by enforcement. Again, it is really in the eye of the beholder.