This content was published prior to the combination of Dentons Sirote. Learn more about Dentons Sirote. 

This is my last blog post before next week’s Presidential Election. But, don’t worry. I am not diving into politics. I do want to consider for a moment what this election means to consumer financial protection and the consumer finance industry.

Twelve years ago, the Obama administration ushered in a new era of consumer protection laws and regulations—first with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, followed by the organization of the Consumer Financial Protection Bureau. President Obama appointed Richard Cordray to lead the CFPB as its first director. This combination of law and an active regulatory agency was unlike anything the consumer finance industry and consumers had experienced since the 1960s.

Recall that in 2010, the USA was still mired in the Great Recession. It would be another few years before we emerged. The Cordray era at the CFPB saw significant enforcement actions. In addition, federal and state prosecutors achieved billions of dollars in settlements from mortgage lenders and mortgage servicers, including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial. In fact, the February 2012 settlement with these five lenders on behalf of 49 states attorneys general was actually valued at $25 billion alone.

Following eight years of a pretty hectic compliance and enforcement regimen, the pendulum swung as President Trump’s CFPB directors and attorneys general put the brakes on both. As a result, the industry has led a relatively quiet four years when it comes to compliance and certainly enforcement of consumer credit protection laws and regulations.

While not offering an election prediction, I will say that if Vice-President Biden is elected next week, the consumer finance industry should expect to see a return to a more activist CFPB. The fact of the matter is that even without Congress passing one new law, nor the CFPB adopting one new regulation, we could have our hands full dealing with what already is on the books. Perhaps it goes without saying, but there may be no better way for our creditors to spend their resources over the next few months than reviewing consumer finance policies and procedures.

As Gust Avrakotos quoted the Zen Master in Charlie Wilson’s War, “we’ll see…”