Banking and Finance Law Daily Wrap Up, CONSUMER CREDIT—State, federal agency officials and practitioners speak at PLI conference, (Sep 24, 2025)

By Thomas G. Wolfe, J.D.

The participants on various panels at the PLI’s annual “Consumer Financial Services Institute” discussed regulatory, supervisory, and enforcement actions as well as industry developments during the past year and those anticipated in the coming year.

Attorneys from federal and state agencies, including those from state attorneys general offices, participated in various panel discussions with practitioners at the Practising Law Institute’s (PLI’s) “30th Annual Consumer Financial Services Institute.” The conference, which took place on September 15 and 16 in Chicago, not only surveyed developments and prominent issues in the consumer financial services field during the past year but also considered what lies ahead in the coming year.

The Co-Chairs of the PLI conference—Julia B. Strickland (Steptoe LLP), Christopher J. Willis (Troutman Pepper Locke LLP), Shennan Kavanagh (National Consumer Law Center), and Ryan Tack-Hooper (Terrell Marshall Law Group)—also served as moderators for the respective panel discussions. These panel discussions were comprised of various governmental officials, practitioners, and other prominent participants in the consumer financial services field.

In his introductory remarks kicking off the conference, Mr. Willis underscored that, during the past several months, dramatic changes have occurred in the consumer financial services field concerning regulatory, supervisory, and enforcement matters: a shift away from focusing heavily on federal agency activities and focusing more on state agency activities—especially in those states that are more populous. Noting that in 2025 the Consumer Financial Protection Bureau has experienced many layoffs and a curtailed budget while also deciding to withdraw proposed rules and to seek dismissals of pending enforcement actions, Willis observed that the reduced activity occurring at other federal financial agencies is marginal in comparison to that of the CFPB. Given the increased activity of the state financial agencies, he discerns a more fragmented regulatory landscape for the future.

Federal developments. Shennan Kavanagh and Ryan Tack-Hooper moderated the first panel discussion, titled “Consumer Advocates and Consumer Protection Enforcers Speak,” with Malini Mithal (Associate Director of the Federal Trade Commission’s Division of Financial Practices), Johanna Hickman (Democracy Forward), and Shelmun Dashan (Policy Director of the Center for Consumer Law & Economic Justice at the University of California, Berkeley School of Law).

Providing her perspective as an FTC official, Ms. Mithal pointed out that the FTC’s jurisdiction in the financial services marketplace is quite broad: not only protecting both consumers and small businesses but also not being limited by a specific type of financial product or service. She sketched the FTC’s work during the past year, including the agency’s continued focus on hidden fees and “junk fees,” automobile financing practices, debt collection practices, small business loans, and various cash-advance services.

Meanwhile, Johanna Hickman, formerly a senior enforcement attorney with the CFPB and now senior counsel at Democracy Forward, noted how, under the Trump administration, the CFPB has been shutting down enforcement actions and terminating consent orders. In particular, she underscored how atypical it is for any new presidential administration to reach back and seek to dismiss cases that had been previously worked on by agency officials for many months and even years under a prior administration. Yet, this is what the CFPB has been doing under the new administration, Ms. Hickman communicated.

Following up on Ms. Hickman’s comments, Shelmun Dashan remarked that many states are evaluating how they might step in to bolster consumer protection in those situations where federal enforcement actions have been undone, settlements have been modified, and so forth. Ms. Dashan also commented that, apart from regulatory and enforcement activity being undertaken increasingly in the state sphere, given the length of certain statutes of limitation and the nature of practices subject to coverage under unfair, deceptive, or abusive acts or practices (UDAAP) laws, certain behaviors and practices taking place currently in the marketplace could still be addressed for noncompliance and/or enforcement in the future by federal agencies—especially if there’s another change in administration.

As a member of the private bar in the State of Washington, Ryan Tack-Hooper noted that in his consumer advocacy practice, he has found it helpful to review consumer complaints and records available through the CFPB and other agencies to better understand points of emphasis and emerging trends. Panelists Johanna Hickman and Shelmun Dashan concurred and echoed the value of reviewing such complaints and records.

State developments. Julia Strickland moderated a “2025 State Regulatory Actions Update” panel discussion with representatives from the respective consumer protection arms of several state attorneys general offices—Christopher L. Filburn (New York), Jon F. Worm (California), Matthew Davies (Illinois), Matthew Lashof-Sullivan (Massachusetts), and Paul D. Edger (Pennsylvania).

Each of the panelists provided a summary of the supervisory, regulatory, and/or enforcement activities in their respective state offices during the past year. Notably, the consensus opinion of these state AG panelists is that there has been an uptick in the number of consumer complaints presented during the past year. Moreover, many of the state AGs also are seeking to address perceived gaps in consumer protection in the wake of budget and personnel cuts to the CFPB and of the new trajectory of federal policies and procedures taking place in the consumer financial services field. Consequently, some of the state AGs are looking to increase staff and resources accordingly.

While the panelists noted the growth of alternative financing products in the marketplace, they also indicated that more issues surrounding cryptocurrency and digital assets are coming to the forefront as well. Further, the AGs continue to address complaints about junk fees, hidden fees, and sophisticated scams and fraudulent practices associated with new and emerging technologies.

Other topics covered. In connection with other panel discussions addressing legal developments in the consumer financial services field during 2025, session topics included: (i) arbitration and class actions; (ii) data security and privacy issues; (iii) cryptocurrency; (iv) fair lending and discrimination litigation; (v) electronic transfer, payment processing, and deposit account matters; and (vi) ethical issues pertaining to the use of artificial intelligence.

Companies: Practising Law Institute

Attorneys: Julia B. Strickland (Steptoe LLP). Christopher J. Willis (Troutman Pepper Locke LLP). Shennan Kavanagh (National Consumer Law Center). Ryan Tack-Hooper (Terrell Marshall Law Group). Malini Mithal, Federal Trade Commission. Johanna Hickman, Democracy Forward. Shelmun Dashan, University of California, Berkeley School of Law. Christopher L. Filburn, New York Attorney General’s Office. Jon F. Worm, California Dept. of Justice. Matthew Davies, Illinois Attorney General’s Office. Matthew Lashof-Sullivan, Massachusetts Attorney General’s Office. Paul D. Edger, Pennsylvania Attorney General’s Office.

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