John R. Coleman quoted in S&P Global article, “Lawsuit against bank watchdog signals increasing pushback against the agency”
S&P GlobalJohn R. Coleman
The S&P Global article, “Lawsuit against bank watchdog signals increasing pushback against the agency,” discusses the suit brought by the U.S. Chamber of Commerce and six trade groups against the CFPB, driven by the bureau’s increased regulatory crack down. In March, the bureau expanded its examination manual to include illegal discrimination to determine whether banks and financial institutions are using unfair, deceptive, and abusive practices. Many in the industry feel the CFPB is being “very highly aggressive” in its approach.
Coleman noted that the exam expansion “left unanswered substantive questions about precisely what type of conduct the bureau is targeting and what makes it unlawful.” He believes that regardless of who wins the case, the lawsuit could provide much-needed insight into the CFPB's approach to discrimination. “Whatever the outcome of the litigation, one positive aspect is that it may force the bureau to clarify and defend its novel position that the prohibition on unfair practices applies to conduct that, while not intended to discriminate, results in ‘discriminatory practices.’”