Dodd-Frank Gives CFPB A Seat At The Enforcement Table

Finding liability for "unfair and deceptive trade practices" has been the linchpin of a series of high profile Federal Trade Commission ("FTC") settlements for years. Now Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") has given the Consumer Financial Protection Bureau of the Treasury Department a new mandate to "protect families from unfair, deceptive, and abusive financial practices" in the context of bank data breaches. In short, this mandate, along with the CFPB's new rulemaking authority over the privacy provisions of the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act, makes it an effective new player in the protection of bank security field. For unwary banks, the result could be an unfair deceptive trade practice allegation.