The resignation of Richard Cordray, head of the US Consumer Financial Protection Bureau loathed by financial firms and congressional Republicans, gives the Trump administration an opportunity to dismantle or abandon pro-consumer payday lending, prepaid card and debt collection rules. Cordray’s replacement is also likely to back off lawsuits filed this year and soften enforcement in general.

Lawsuits have been filed against student loan servicer Navient and mortgage loan servicer Ocwen for allegedly failing borrowers, TCF bank for allegedly tricking consumers on overdrafts, and Freedom Debt Relief for allegedly misleading customers and charging them without settling debts.

The new chief, who will have to be confirmed by the Senate once appointed by President Donald Trump, will likely have to jump through legal hoops to change final rules. But Alan Kaplinsky, a partner at the Ballard Spahr law firm, which represents financial firms in consumer cases, said the incoming director will "absolutely" go through those hoops to make the rules more industry-friendly.

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