How Are Landlords Affected Now That The Consumer Financial Protection Bureau Has Been Told to “stand down from performing any work task” by the President?
This blog post is authored by Atty. Gary D. Koch of Pettit Law Group S.C.
The Consumer Financial Protection Bureau (CFPB) was created in 2011 primarily in response to the 2008 financial crisis and recession. It has been tasked with protecting consumers from unfair financial practices from banks, lenders, other financial companies, and, yes, even landlords. The CFPB was one of the agencies charged with enforcing the CARES Act, and has been active in regulating tenant screening processes.
Earlier this February, the Trump administration ordered that the CFPB’s employees “stand down from performing any work task.” The Bureau’s webpage currently provides a “404: Page not found” message (although the links from the home page, such as “Submit a Complaint” remain active). It is unclear whether any submitted complaint will garner any attention.
From a landlord’s perspective, though, this may have little immediate impact. All of the previously enacted statutes, rules, and regulations remain in place, at least for now. CFPB regulations have not been repealed. The CARES Act is still on the books. Other federal agencies (like the FTC and Department of Justice) still have jurisdiction to pursue landlords for unfair business practices.
The CFPB’s deactivation, though, signals a trend toward reducing and deregulating consumer protections. There may be more action to come.
This federal trend has yet to make it to the state level. The Wisconsin Department of Agriculture, Trade, and Consumer Protection remains active. State Courts are still the venue for evictions and can enforce the CARES Act by dismissing an improperly noticed eviction. Koble has emboldened tenant advocates, although the Wisconsin Supreme Court just accepted the case. However, it is still a good time to be a careful landlord.
The current administration’s philosophy to shrink the federal government is undoubtedly something we will keep our eyes on! We will keep you updated.
This blog post is authored by Atty. Gary D. Koch of Pettit Law Group S.C.