Bloomberg Law
March 11, 2021, 8:15 PM

CFPB Lifts Limits on Penalizing Banks for Abusive Conduct

Evan Weinberger
Evan Weinberger

The Consumer Financial Protection Bureau lifted Trump-era restrictions on the agency’s ability to collect civil penalties and disgorgement from banks and financial companies for abusive acts and practices.

The agency on Thursday rescinded a January 2020 policy statement from former CFPB Director Kathy Kraninger that established a tough, two-part test for enforcement staff to bring abusiveness claims under the Dodd-Frank Act.

The policy statement “was inconsistent with the Bureau’s duty to enforce Congress’s standard and rescinding it will better serve the CFPB’s objective to protect consumers from abusive practices,” the CFPB said in a statement.

The 2010 Dodd-Frank Act, ...

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