John R. Coleman quoted in S&P Global article, “Consumer agency using 'every tool' to step up scrutiny of financial institutions”
S&P GlobalJohn R. Coleman
The S&P Global article, “Consumer agency using 'every tool' to step up scrutiny of financial institutions,” examines the CFPB’s “any means necessary approach” to crack down on financial institutions and advance the bureau’s key priorities under Director Rohit Chopra. A broad range of measures to further the aim of the CFPB, include lawsuits, announcements, reviews, advisory opinions, rules and enforcement initiatives. Although, consumer advocates welcome the approach, it has raised industry concern about whether it goes too far.
Coleman noted that more communication is needed with financial institutions before the CFPB takes action. “The job of any regulatory agency is to explain the rules of the road to the companies it covers and to enforce them evenhandedly. But in some cases, like recent changes to its [unfair, deceptive, or abusive acts or practices] exam manual, the CFPB has taken action without offering clear guidance or even explaining its legal authority. Greater attention to input from all stakeholders would ensure that it has fully considered the soundness and implications of the way it interprets its rules.”