CFPB Director Kathy Kraninger described FY 2019 initiatives to coordinate efforts between the CFPB and state agencies to strengthen consumer protection. In remarks at the National Association of Attorneys General Capital Forum, she focused on partnership efforts with the states, collaboration on innovation policies, and a joint focus on small dollar and debt collection rules.
Enforcement and Supervision
Ms. Kraninger stated that in FY 2019, the agency:
- announced 22 public enforcement actions and settled six lawsuits;
- obtained $777 million in consumer relief and $185 million in civil money penalties; and
- worked with state governments to increase supervision and enforcement regarding financial products and services.
Ms. Kraninger noted that since the establishment of the American Consumer Financial Innovation Network ("ACFIN"), an organization dedicated to federal and state collaboration to (i) protect consumers, (ii) facilitate competition and (iii) strengthen financial inclusivity, fourteen attorneys general have become members. She noted further that ACFIN creates "regulatory certainty for innovators" by allowing federal and state officials to coordinate when developing new rules.
Payday and Debt Collection Rules
Ms. Kraninger described a recent proposal to revise mandatory underwriting provisions concerning the small-dollar loan regulation (see previous coverage). She explained that the proposal addresses circumstances where consumers may not have access to payday loans and lenders may not be able to offer them. She noted that the CFPB plans to finalize the proposal by April 2020.
Separately, she provided an update on a debt collection proposal (see previous coverage) that would (i) address third-party debt collection communication, (ii) impose restrictions on unfair debt collection practices and (iii) clarify requirements regarding disclosures for consumers facing debt collection. She stated that the CFPB plans to release a Supplemental Notice of Proposed Rulemaking in early 2020.
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