With the CFPB declaring jurisdiction over ISAs ... there’s a question of how they’re going to use that power.
JFF Program Director Ethan Pollack, who leads our Financing the Future initiative, was quoted in an American Banker story about the Consumer Financial Protection Bureau’s recent moves to tighten regulatory control of providers of income share agreements (ISA).
“There’s a little more downside risk now, but there’s also more upside potential as well,” Pollack told American Banker.
“With the CFPB declaring jurisdiction over ISAs, at least with regard to [the Truth in Lending Act], certainly, there’s a question of how they’re going to use that power, and I think that there is some cause for concern,” he said. “But also, if they use that power wisely and in a way that is aligned with consumer interests, then I think you could achieve a lot greater regulatory clarity.”