September 23, 2019

September 20, 2019

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NYDFS Creates New “Powerhouse” Consumer Protection and Financial Enforcement Division

The New York Department of Financial Services has announced the creation of a new “powerhouse” Consumer Protection and Financial Enforcement Division. The Division has been created by consolidating the Enforcement and Financial Frauds Division and Consumer Protection Division and will place supervision, enforcement, and consumer education under the same roof. The Division consists of the Enforcement Division, Investigations and Intelligence Division, Civil Investigations Unit, the Consumer Examinations Unit, and the Student Protection Unit, among others.

To head the new Division, acting Superintendent Linda Lacewell has appointed Katherine Lemire as Executive Deputy Superintendent. Ms. Lemire worked most recently in the private sector as a partner at StoneTurn, an international consulting firm, which acquired the risk and compliance firm Lemire LLC that she founded. Prior to her work in consulting, Ms. Lemire was an Assistant U.S. Attorney in the Southern District of New York and an Assistant District Attorney in the Manhattan District Attorney’s Office.

The New York Department of Financial Services continues to be one of the most active state regulators and the new structure indicates a strategic focus on consumer financial services and the prioritization of enforcement as a preferred regulatory tool. New York is the second state to create a “mini” CFPB, following Pennsylvania.

The announcement comes on the heels of new student loan servicer licensing and supervision legislation enacted on April 1 and after the New York Attorney General appointed Christopher D’Angelo, formerly the CFPB’s Associate Director in charge of the Supervision, Enforcement and Fair Lending Division, as Chief Deputy Attorney General for Economic Justice.

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Brian Slagle, Philadelphia lawyer, Ballard Spahr law firm
Associate

Brian J. Slagle is an associate in the Business and Finance Department and a member of the Consumer Financial Services Group. His practice focuses on providing regulatory advice to clients on state and federal consumer finance laws. He regularly assists clients with a range of compliance and transactional issues relating to licensing, the Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), Electronic Funds Transfer Act (EFTA), Electronic Signatures in Global and National Commerce Act (ESIGN), the Telephone Consumer Protection Act (TCPA), the Fair Credit...

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James Kim, Ballard Spahr Law Firm, Los Angeles, Financial Law Litigation Attorney
Of Counsel

Mr. Kim advises companies and individuals in matters involving financial regulation and litigation, and the myriad of federal consumer financial laws, such as Title X of Dodd-Frank (UDAAP), TILA, RESPA, EFTA, and the FDCPA. He has represented clients in examinations and investigations with the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), U.S. Department of Justice (DOJ), U.S. Securities and Exchange Commission (SEC), and various state and local agencies. His practice focuses on cutting-edge issues, including financial technology (FinTech), mobile financial services, and marketplace lending.

In addition to his regulatory work, Mr. Kim has tried, as first or second chair, more than 20 cases to verdict, and has briefed criminal and civil appeals before the U.S. Court of Appeals for the Second Circuit and the New York State Appellate Division.

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Marjoree Peerce Litigator  Criminal Defense Ballard Law FIrm
Partner

Marjorie J. Peerce is a litigator, with a practice focus on white collar criminal defense, regulatory matters, and complex civil litigation. In her more than 30 years of practice, she has handled matters across the criminal and regulatory spectrum. She is Co-Managing Partner of the firm's New York Office.

Ms. Peerce appears in New York state and federal courts, as well as in federal districts around the country. She has handled criminal and regulatory investigations concerning, for example, violations of the Internal Revenue Code, securities...

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