Trump nominates CFPB’s former No. 2 as director

Expect a major shift in how the government oversees customer financing. President-elect Trump has nominated Brian Johnson to lead the Consumer Financial Protection Bureau (CFPB). Johnson was the agency’s former number-two official. His appointment signals a move away from the aggressive enforcement style seen over the last few years. For retailers and service providers, this likely means less 'regulation by enforcement' and more predictable rules of the road. Under recent leadership, the CFPB has focused heavily on cracking down on 'junk fees' and late payment penalties. They also closely scrutinized Buy Now, Pay Later (BNPL) providers and consumer lenders. A leadership change under Johnson will likely prioritize clear guidance over sudden lawsuits. He is expected to roll back some of the stricter interpretations of consumer law that have made it harder for lenders to offer flexible credit products. This could make it easier for your financing partners to expand their offerings or lower their administrative costs. While the agency will still protect consumers from fraud, the general tone will be more business-friendly. You can expect a reduction in the red tape that often delays new financing products from reaching your checkout counter. This is generally good news for merchant operators who rely on competitive lender environments to drive sales.

Source: Banking Dive

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