Vought's memo signals a significant change in the Consumer Financial Protection Bureau's (CFPB) policy. He criticizes the bureau for previously engaging in practices that treated legal guidelines as hurdles to override rather than statutes to honor. Moving forward, the CFPB will not issue guidance that imposes any binding rights on external entities. Vought also announced a thorough review of existing policies, which could lead to the rescindment of over 100 previous guidance documents that do not comply with this new standard. The broader goal reflects ongoing efforts by the Trump administration to diminish the CFPB's authority.
Vought's memo emphasizes a shift in CFPB practices, ending weaponization of guidance documents that unlawfully regulate private entities without fair notice.
Effective immediately, bureau components are prohibited from issuing guidance that creates binding rights or obligations on external parties, as per Vought's directions.
Vought criticized past practices for treating legal restrictions as obstacles rather than respected laws, mandating a clear nonbinding nature for all future guidance.
A comprehensive internal review will assess over 100 existing guidance documents, with the intent to rescind those that lack legal foundation or impose unwarranted obligations.
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