CFPB Adds Friction to Fintech Inclusion Efforts

4 minute read | Bloomberg Law | October.03.2022

Orrick’s Carolyn Frantz, Melissa Guidorizzi and David Devich co-authored an article in Bloomberg Law on the Consumer Financial Protection Bureau’s increased enforcement around discriminatory practices and fintech companies. “The CFPB is poised to redouble its enforcement and supervisory efforts. Expansion of its authority and its recent interpretations of the Equal Credit Opportunity Act and the Unfair, Deceptive, or Abusive Acts or Practices provide it with additional tools to regulate potential discrimination,” the authors explain.

They added that, “While these increased efforts will be felt across various industries, fintechs that promote financial inclusion are likely to fall under greater regulatory scrutiny due to their stated focus,” and suggest that “Companies should consider developing appropriate compliance structures to manage those risks.”