Have some of the tasks previously handled by the FTC been handed off to the lesser regulated CFPB? It remains to be seen, but a recent decision by Director Richard Cordray regarding a mortgage lender action by the agency might signal a broader interpretation that merchant acquirers need to keep in mind.
“Notably in this case and in an unusual move, CFPB filed an administrative claim before an administrative law judge, instead of filing suit in federal district court.
In his decision, Cordray agreed with the administrative law judge that “although RESPA provides a three-year limitations period for enforcement actions brought in federal court, no statute of limitations applies to administrative enforcement actions brought by the CFPB.”
But more importantly, there is the issue of Cordray’s decision that turned a $6.5 million fine into a $109 million fine.” (Trey Garrison, housingwire.com). Per attorney Ori Lev at K & L Gates, “His decision as a whole is consistent with the CFPB’s approach to interpret the laws it is charged with enforcing in a manner most favorable to consumers.”