New York’s newly created Consumer Protection and Enforcement Division may bump up the frequency of the state’s Dodd-Frank Act claims, Robert Savoie, partner at McGlinchey Stafford, told Auto Finance News.
Dodd-Frank claims allow regulators to seek relief for borrowers outside the state where the litigation originated if the case is transferred to federal court — potentially opening lenders to additional restitution payments for allegations of noncompliance. The Pennsylvania attorney general’s office employs a similar strategy when dealing with consumer financial protections.
The new division, nested within the N.Y. Department of Financial Services, has the potential to influence regulatory oversight on a national scale, much like California does, Savoie said.
“California and New York are two of the biggest states in the country, and New York is a major financial center,” he said. “So, I do think those are two of the more influential states in the country — just by virtue of [population] and the more aggressive stance of the regulatory bodies in those states.”
The N.Y. Consumer Protection and Enforcement Division is responsible for “protecting and educating consumers and fighting consumer fraud, as well as ensuring that regulated entities comply with New York and federal law in relation to their activities serving the public,” according to a press release. It will be headed by Katherine Lemire, a former assistant U.S. attorney in the Southern District of New York.
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