Little-Discussed Aspect of CFPB Ruling Could be Boon to Lawyers
Lawyers who advise banks, mortgage lenders and other industries regulated by the Consumer Financial Protection Bureau were hit by a blizzard of calls and inquiries this week by clients who are feeling more confident in challenging the agency after a court ruling limited its authority and rejected its statutory interpretations.
While the constitutional authority issue grabbed headlines, the ruling is consequential on statute of limitations, too, and could have immediate consequences, lawyers said.
“[Financial industry companies] in some instances will feel emboldened to push back on CFPB’s more expansive interpretations of consumer protection laws,” said Matthew Previn, a partner at BuckleySandler representing clients before the agency in enforcement actions. “Up until this point, the CFPB has been fairly aggressive in interpreting a number of consumer protection laws and this is the first time there’s been judicial pushback.”