Jonathan Kolodziej Quoted in Corporate Compliance Insights on Impact of Federal Deregulation at CFPB

Bradley attorney Jonathan Kolodziej was quoted in Corporate Compliance Insights on the weakened Consumer Financial Protection Bureau (CFPB) and its broader impact on the financial services industry and regulatory compliance.

In recent months, the CFPB has withdrawn several enforcement actions — including cases involving Zelle and Capital One — while an April court injunction suspended planned layoffs affecting 90% of the agency’s workforce, part of a cost-reduction initiative led by Elon Musk and his DOGE-affiliated associates, in litigation that remains unresolved.

“With the day-to-day operations of the CFPB in a state of flux, predicting what could happen next may be a fool’s errand,” said Kolodziej.

“It’s all very fast and hectic right now, and I think … we just have to let the dust settle. I don’t think anyone truly knows what [exact plans] the Trump Administration [has for] the CFPB,” Kolodziej said.

Compliance teams will have plenty to keep them busy. In addition to state authorities, compliance departments should keep private rights of action in mind.

“If … a provider violated a law, didn’t provide us a protection or a right that we have under federal law, we oftentimes have the right to sue them to enforce compliance and recoup damages or penalties,” Kolodziej explained. “So, that certainly isn’t going away just because the bureau isn’t quite as forceful or active as it has been.”

Compliance professionals will have to figure out how to interact with a leaner CFPB, if it exists, and they should stay abreast of state enforcement that comes into play and consider the risks of another big regulatory swing in the future. 

“I think uncertainty requires compliance professionals,” Kolodziej added.

The full article, “What Does Weakened CFPB Mean for FinServ Compliance?,” was published by Corporate Compliance Insights on April 30, 2025.