An Aggressive CFPB Likely in the Offing as Biden Prepares to Take Power

With President-elect Joe Biden formally taking power two weeks from today, businesses would be well-served to prepare for a vastly more aggressive regulatory environment than the one they have experienced under President Trump.

That includes the Consumer Financial Protection Bureau, which was authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act during President Obama’s first term. While President Trump sought to cut regulations wherever possible, the Biden transition team has promised to beef up regulatory enforcement in places where it has gone nearly dormant over the past four years.

With this in mind, we encourage our members to ensure they are in compliance with the Equal Credit Opportunity Act and Dodd-Frank, just as they should have been under both the Obama and Trump administrations. Our friends at NADA have provided helpful guides to ensure ongoing compliance with federal laws and regulations – one of those is their Fair Credit Compliance Program, an optional benefit that provides dealers with an simplified compliance template they can put into action.

We also encourage you to review NADA’s Voluntary Protection Products Guide at this link. The guide is designed to help dealerships develop a simple, yet professional, consumer-friendly menu of voluntary protection products that can be offered to customers.

The rulemaking authority of the executive branch is vast, and it is likely there will be many changes from the regulatory status quo of the past four years. WANADA will continue to make our members aware of all ongoing regulatory changes in Washington as they are proposed and developed, both in the executive branch and potentially through legislative action in Congress as well.

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