In February, Consumer Financial Protection Bureau Director Richard Cordray spoke out about the latest thinking on several "hot-button" issues facing the bureau. In his speech, he underscored the fact that consumers have no voice when it comes to choosing the firm that collects on their debts, the company that services their mortgage, or the company that gathers data on their credit history.

Dir. Cordray stated: "When people cannot vote with their feet, their clout is limited, even though these products and services can have a profound influence on their lives." Though no one can predict what actions he will take based on these viewpoints, the banking industry will probably be affected, and the CFPB may well give added scrutiny to the ties between specific companies and consumers.

Ballard Spahr consumer financial services partner Alan S. Kaplinsky is one of those banking attorneys who take issue with Dir. Cordray's argument. Mr. Kaplinsky told American Banker, "I think his reasoning is flawed. If a debt collector mistreats a consumer from whom they're trying to collect a debt, they're going to get sued."

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Consumer Financial Services
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