<bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Prospective changes to the financial regulatory environment under the new administration are coming into focus alongside President Joe Biden's nominees for head regulatory positions, The Wall Street Journal <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9iYW5rcy1icmFjZS1mb3ItdG91Z2hlci1ydWxlcy11bmRlci1iaWRlbi1vbi1jb25zdW1lci1wcm90ZWN0aW9uLWZhaXItbGVuZGluZy0xMTYxMjAyMjQwMA/5d233c18f730436f2414784fBcbfc4104" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy9iYW5rcy1icmFjZS1mb3ItdG91Z2hlci1ydWxlcy11bmRlci1iaWRlbi1vbi1jb25zdW1lci1wcm90ZWN0aW9uLWZhaXItbGVuZGluZy0xMTYxMjAyMjQwMA/5d233c18f730436f2414784fBcbfc4104&source=gmail&ust=1612440226369000&usg=AFQjCNF_qr1uEk64vudyMK6eYr6Xetj0aw"><u>reports</u></a>.</p><p><img class="center" src="https://static2.businessinsider.com/image/601aa41301504a00197fb560-2298/Average US overdraft Fee by Year.png" border="0" alt="Average US overdraft Fee by Year" data-mce-source="Insider Intelligence"></p><p>Rohit Chopra, who currently serves on the Federal Trade Commission, has been nominated to head the Consumer Financial Protection Bureau (CFPB), and former Treasury Department official Michael Barr is reportedly the top candidate to lead the Office of the Comptroller of the Currency.</p><p>The Biden team already appears likely to enact several key changes:</p><ul><li>Stiffer enforcement of financial regulations. Chopra would likely ramp up enforcement actions at the CFPB, specifically by focusing on increasing monetary penalties and cracking down on repeat offenders, per the Journal. This change would necessitate that banks dedicate more resources to compliance measures, as penalties for violations would increase across the board, and especially for those who struggle repeatedly to meet regulatory standards.</li><li>A push to establish a government-backed credit firm. An official told the Journal that Biden's team plans to create a government-backed alternative to companies like Experian and Equifax that generate consumer credit reports. A government credit bureau that aims to provide fair and holistic credit scores could put a dent in alternative lenders like <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cucGV0YWxjYXJkLmNvbS8/5d233c18f730436f2414784fB22b4187e" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cucGV0YWxjYXJkLmNvbS8/5d233c18f730436f2414784fB22b4187e&source=gmail&ust=1612440226370000&usg=AFQjCNGsY5hblR1t7N-69KeCoHDrxv6oyw"><u>Petal</u></a> or <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cubGVuZGluZ2NsdWIuY29tLw/5d233c18f730436f2414784fB3d726cce" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cubGVuZGluZ2NsdWIuY29tLw/5d233c18f730436f2414784fB3d726cce&source=gmail&ust=1612440226370000&usg=AFQjCNHVer2j8FN8K_GrutXs8ZA-ra4LPA"><u>LendingClub</u></a> whose businesses are centered on examining more data points to widen the pool of applicants who can get a loan.</li><li>A much tougher environment for payday lenders. Chopra may also revisit a provision requiring payday lenders to verify the incomes of borrowers to ensure they can pay back high-interest short-term loans. The CFPB, alongside other regulatory bodies, already issued a statement in May <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cubmN1YS5nb3YvZmlsZXMvcHJlc3MtcmVsZWFzZXMtbmV3cy9pbnRlcmFnZW5jeS1zdGF0ZW1lbnQtc21hbGwtZG9sbGFyLWxlbmRpbmctY292aWQxOS5wZGY/5d233c18f730436f2414784fB7b68557e" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cubmN1YS5nb3YvZmlsZXMvcHJlc3MtcmVsZWFzZXMtbmV3cy9pbnRlcmFnZW5jeS1zdGF0ZW1lbnQtc21hbGwtZG9sbGFyLWxlbmRpbmctY292aWQxOS5wZGY/5d233c18f730436f2414784fB7b68557e&source=gmail&ust=1612440226370000&usg=AFQjCNHhFHxm1aK4w0M6RIjFZ-pIHWxMsg"><u>encouraging</u></a> financial institutions to provide consumers with small-dollar lending options to lessen reliance on predatory payday lenders, and several banks, including <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cudmFyb21vbmV5LmNvbS9wcmVzc19yZWxlYXNlL2ludHJvZHVjaW5nLXZhcm8tYWR2YW5jZS1pbnN0YW50LWNhc2gtYWNjZXNzLXVwLXRvLTEwMC8/5d233c18f730436f2414784fBd6d02f31" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly93d3cudmFyb21vbmV5LmNvbS9wcmVzc19yZWxlYXNlL2ludHJvZHVjaW5nLXZhcm8tYWR2YW5jZS1pbnN0YW50LWNhc2gtYWNjZXNzLXVwLXRvLTEwMC8/5d233c18f730436f2414784fBd6d02f31&source=gmail&ust=1612440226370000&usg=AFQjCNHcyr5MtPQ6tIevyskHgiODko8MUQ"><u>Varo</u></a> and <a href="https://e.insiderintelligence.com/click/22831901.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" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.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&source=gmail&ust=1612440226370000&usg=AFQjCNGvoCTFNdlte-fobuy8Nj2aM5P24w"><u>Bank of America</u></a>, have complied. These competing offerings, combined with tougher regulation, could drive customers to banks' short-term loan services, endangering payday lenders' business model.</li></ul><p>These expected changes are in line with our prediction that Biden's win in the November election would result in new leadership and bolder oversight from the CFPB. Insider Intelligence <a href="https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly9jb250ZW50LW5hMS5lbWFya2V0ZXIuY29tL3doYXQtYmlkZW4tdmljdG9yeS1kaXZpZGVkLWNvbmdyZXNzLW1lYW4tYmFua3M/5d233c18f730436f2414784fB7f6352a9" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22831901.4/aHR0cHM6Ly9jb250ZW50LW5hMS5lbWFya2V0ZXIuY29tL3doYXQtYmlkZW4tdmljdG9yeS1kaXZpZGVkLWNvbmdyZXNzLW1lYW4tYmFua3M/5d233c18f730436f2414784fB7f6352a9&source=gmail&ust=1612440226370000&usg=AFQjCNFZ2ZVn3lQoRfNlmEeeLiQ0LuqDOQ"><u>predicted</u></a> that former President Trump's pick to head the bureau, Kathy Kraninger, would resign or be replaced with a director whose vision includes greater regulatory oversight of financial institutions.</p><p>The moves that the CFPB already seems prepared to make suggest that this heightened level of oversight will come to fruition quickly. What remains to be seen is whether the CFPB will also take action regarding overdraft fees and consumer financial data sharing, as we expect it will during the Biden administration.</p><p><strong><em>Want to read more stories like this one' Here's how you can gain access:</em></strong></p><ol><li>Join other Insider Intelligence clients who receive this Briefing, along with other Banking forecasts, briefings, charts, and research reports to their inboxes each day. <a href="https://www.insiderintelligence.com/become-a-client/'IR=T&itm_source=businessinsider&itm_medium=content_marketing&itm_campaign=briefing_post&itm_content=bottom_bullets&itm_term=enterprise_text_link-biden-led-financial-regulators-prepare-to-crack-whip-2021-2">>> <strong>Become a Client</strong></a></li><li>Explore related topics more in depth. <a href="https://store.businessinsider.com/collections/banking'IR=T&itm_source=businessinsider&itm_medium=content_marketing&itm_campaign=briefing_post&itm_content=bottom_bullets&itm_term=store_text_link-biden-led-financial-regulators-prepare-to-crack-whip-2021-2">>> <strong>Browse Our Coverage</strong></a></li></ol><p><em>Current subscribers can access the entire Insider Intelligence content archive <a href="https://subscriptions.emarketer.com/">here</a>.</em></p><p><a href="https://www.businessinsider.com/biden-led-financial-regulators-prepare-to-crack-whip-2021-2#comments">Join the conversation about this story »</a></p>
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