Regulatory and Legislative Developments for 2023

I reported on it last month. Regulation year advanced to 2022I think 2023 should get us used to surprises, but the industry can be prepared for certain market trends and continued regulatory scrutiny. , here are some topics that lenders should pay attention to:

Looking ahead to 2023, one big question is what impact the Fed’s actions will have on the economy at large. How would the performance of existing accounts be impacted if the recession were to occur as predicted? What are the basic policies and controls that financial firms need to monitor?

In some respects this is nothing new, as we saw similar activity after COVID-era supplements ended in 2021. CFPB — Increased surveillance for consumer protection.

CFPB concerns

On the CFPB topic, we expect to see concerns about consumer access to credit due to rising interest rates, building on the issues already discussed. Financial firms should be prepared to document and demonstrate consistency in their credit decisions to avoid inquiries about fair lending practices.

Also, would the CFPB’s restrictions on payment of fees expand enforcement to question the behavior of creditors when they use the authority of the UDAAP to collect on their accounts? Is it the dreaded “camel-back-broken straw” that triggers expansion of the Fair Debt Collection Practices Act and Regulation F limits on debt collectors?

Pressure on Capitol Hill

Finally, with the new composition of Congress, we are already beginning to hear voices challenging the CFPB’s current stance of “regulation by press release.” How will the Secretariat respond to mounting pressure from Congress?

And near the Capitol, how will the Supreme Court deal with the Fifth Circuit’s October ruling on the constitutionality of the Bureau as a whole and the division of the circuit? Will it be a rigorous, precision-based decision adjudicating the particular issue at hand in a Community Financial Services case, or, as we have known since 2011, the courts will Will they decide to overthrow the entire regulatory system?

In an industry that is always in flux, there are bound to be compliance issues that you haven’t yet considered. From emerging areas such as electric vehicle lending and financing to the “electrification” of customers’ entire daily lives, to the ongoing scrutiny of GAP and voluntary protection products, learn how compliance programs support and protect your business objectives. We will keep you up to date throughout the year. your property.

Mark Edelman and chairs the National Consumer Financial Services Compliance Practice Group. mcgrinchee.

Auto Finance News’ new spring event, Auto Finance Summit East, will take place May 10-12 at the JW Marriott Nashville. Learn more about the Spring 2023 event and registration here. autofinance.live/afs-east.

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