Global law firm Goodwin today announced the release of its seventh annual Consumer Finance Year in Review. Produced by the firm’s Consumer Financial Services Litigation and Enforcement + Government Investigations practices, and authored by partners Anthony Alexis, Sabrina Rose-Smith, Kyle Tayman, Levi Swank, Matt Riffee, and Christina Hennecken, the in-depth report summarizes major regulatory, litigation, and enforcement activity that impacted the consumer financial industry in 2022, and identifies the key trends for 2023.
The report also offers detailed analysis of proposals and planned federal enforcement actions across and within mortgage and auto origination and servicing, data privacy, student lending and other sectors under the Consumer Financial Protection Bureau’s (CFPB) purview.
“With a new enforcer at the helm of the CFPB, 2022 was a foundational year in the regulatory and enforcement space for the consumer financial services industry,” said Sabrina Rose-Smith. “Over the next twelve months, we anticipate the CFPB will continue to expand its authority and take an aggressive stance on enforcement, including wielding its power over a larger population of extended targets, particularly on fintech and other non-traditional finance companies this year. This is just one of the many major trends we explore in this year’s Review.”
What to watch in 2023:
- Appellate Challenges Will Shape Consumer Finance Litigation. Expect pivotal judicial decisions resolving lawsuits that threaten the very existence of federal consumer protection agencies.
- Uptick In Payday Lending Actions. After a relatively quiet 2022 in the payday lending space, the CFPB is likely to bring new enforcement actions against payday/small dollar lenders under Unfair, Deceptive, or Abusive Acts or Practices theories.
- Crypto-Contagion Continues. The ramifications of the failed cryptocurrency exchange will likely reverberate throughout 2023 as additional bitcoin and crypto lenders are forced to scale back their capabilities given the heightened focus on regulation.
- Student and Auto Lending Remain a Target. Student and auto lending will again be at the forefront of the CFPB’s enforcement priorities with heightened scrutiny from regulators, particularly if the United States Supreme Court issues a ruling blocking some of the Biden Administration’s orders.
For the latest news and updates on consumer finance regulation, litigation and enforcement, check out Goodwin’s newly relaunched Consumer Finance Insights (CFI) blog, a go-to resource with real-time reporting to help companies and in-house counsel navigate the evolving legal and regulatory landscape.
Goodwin’s Consumer Financial Services Litigation and Enforcement + Government Investigations teams represents some of the nation’s most prominent providers of consumer financial services, including banks, mortgage companies, credit card issuers, student lenders, and debt collectors, on both litigation and enforcement matters. It defends consumer financial services companies in putative class actions in courts across the nation. Goodwin’s attorneys also represent clients before a variety of administrative officers and agencies, including the CFPB, the Department of Justice, the Federal Trade Commission, the Department of Housing and Urban Development, federal and state banking regulatory agencies, offices of inspector general for various federal agencies, state attorneys general and district attorneys. Goodwin’s litigation and enforcement attorneys work closely with attorneys in the Consumer Financial Services Regulatory practice.
The post Goodwin Year-In-Review Confirms 2022 Was a Regulatory Harbinger of What is in Store for The Consumer Finance Industry In 2023 appeared first on Consumer Finance Insights (CFI).