The consumer finance watchdog just removed its own rulebook for banks

The Consumer Financial Protection Bureau (CFPB) is withdrawing many of its past guidance documents. This means banks and other financial companies will no longer have clear instructions on how the CFPB interprets consumer protection laws.

For years, banks and other financial institutions relied on these guidance documents to understand what the CFPB expected of them. Without these specific instructions, companies face more uncertainty about what is legal and what is not. This could lead to fewer new financial products, or more aggressive practices, as companies test the boundaries of enforcement.