It’s no secret that lenders are living in a more regulated space as a result of interest from the Consumer Financial Protection Bureau. And, as the case of Condor Capital in New York shows, state regulators are likely to flex their own muscle to take on lenders in years to come.
The Condor case is the first legal action initiated by a state regulator under section 1042 of the Dodd-Frank Act. That provision empowers state regulators to bring similar civil actions in federal court for violations of Dodd-Frank’s consumer protection requirements and to obtain restitution for abused customers, as well as securing other remedies under that law.
