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As a consumer financial services business, you regularly interact with the government. At Hinshaw, we use what we call the 5 Rs to manage these interactions successfully—whether reactively or proactively: Relationships, Regulatory Framework, Rationale, Risk, and Resources.

The 5 Rs

Relationships – Know your Regulator. With a number of former regulators on our team, we put our deep experience working in government offices to work in the strong defense of our clients. Examples of government entities with which we regularly interact include:

  • Consumer Financial Protection Bureau
  • State Attorneys General
  • Department of Justice
  • Federal Trade Commission
  • Federal Reserve Board
  • Financial Industry Regulatory Authority
  • Office of the Comptroller of the Currency
  • Prudential Banking Regulators
  • Securities & Exchange Commission
  • State departments of financial regulation
  • City departments of consumer affairs

Regulatory Framework – Know the Rules. We believe process and procedure matters, which is why we advise you about the most efficient and effective ways to reach your goals. We help you develop the compliance culture that is right for your organization, and we are experienced in handling all stages of regulatory action, including:

  • Letters of inquiry from regulators or enforcement agencies
  • Responding to a subpoena or civil investigative demand (CID)
  • Subpoena or CID enforcement proceedings
  • Petitions to modify or set aside subpoenas or CIDs
  • Assisting and guiding through all phases of examination or supervisory processes
  • Responding to CFPB Notice of Opportunity to Respond and Advise (NORA) letters or Proposed Actions Response Request (PARR) letters;
  • Negotiating memorandums of understanding, Assurances of Voluntary Compliance, or other equivalent documents;
  • Litigating and defending against enforcement proceedings;
  • Negotiating settlements including consent judgments;
  • Monitoring and participating in rule making, comment processes, and other regulatory proceedings;    
  • Conducting external audits or advising on internal audits;
  • Designing and implementing cost-effective compliance programs;
  • Providing monitoring functions or other post-judgment or settlement compliance implementation

Rationale – Understand Regulatory Motivation. We have a keen awareness of the motivational forces behind regulator activity, including closely tracking marketplace trends and media attention to those trends. Understanding the array of possible regulator motivations can be crucial in achieving success. We counsel with innovation top of mind while cautioning about pitfalls.

Risk – Know what is at Stake. Evaluating risk is about much more than deciding whether or not to litigate a government action. At Hinshaw, we focus our counseling on assessing risks posed in a variety of different contexts, including public perception & media, impact on investors and shareholders, competitive advantage and disadvantage, customer relationships, relationships with lawmakers, rule makers, and law enforcement, and opportunities to become an industry leader.  

Resources – Formulate your Strategy. Available resources can dictate outcomes on both sides of the case. Whether it is a multistate action, or an individual regulator, we help our clients understand what resources are being utilized by the government and how we can leverage resources to our advantage. We are passionate about providing flexible and practical solutions to client needs.

Our experience with a variety of laws related to financial services allows us to find synergies to service clients effectively. Some of those laws include: 

  • Consumer Financial Protection Act (CFPA)
  • Electronic Funds Transfer Act (EFTA)
  • Equal Credit Opportunity Act (ECOA) and state equivalents
  • Fair Credit Reporting Act (FCRA)
  • Fair Debt Collection Practices Act (FDCPA)
  • Fair Housing Act (FHA)
  • Federal Trade Commission Act (FTCA) and state equivalents
  • Homeowner Protection Act (HPA)
  • Racketeer Influenced and Corrupt Organizations Act (RICO) and state equivalents
  • Real Estate Settlement Procedures Act (RESPA)
  • State payday loan laws and regulations
  • State short term installment loan and revolving lines of credit laws and regulations
  • State usury laws
  • Telephone Consumer Protection Act (TCPA)
  • Truth in Lending Act (TILA)
  • Unfair, Deceptive or Abusive Acts or Practices (UDAAP)

Our Client Service Philosophy

Our mission is to deliver highly efficient and effective client service. That means we want to get to know you, your culture, your business and your goals. That allows us to tailor our service to your needs and your objectives.

When you reinvent yourself, so do we. We have been a part of organizational shifts alongside our clients, whether that's technology changes, shifts in organizational behavior, or new regulatory mandates. We don't practice law in a vacuum because we appreciate that what we call a legal challenge is your operational hurdle. But, with all the need to adapt and pivot, we know what's most important at core: Your customers. It's what drives your business, and it's what drives ours.

Thought Leadership

Following industry trends and breaking news that impacts your business—and providing analysis to you about them—are a priority for us. We blog about these topics at Consumer Crossroads, and also publish a newsletter and client alerts. Our blog is our online community. We invite you to follow the conversation by subscribing at www.hinshawcfs.com.

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