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Chair of Ballard Spahr's Consumer Financial Services Group Alan Kaplinsky breaks down whether lawyers are profiting from new financial-services laws.
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Hi -- about -- chasing money got to admit though there's truth to that I mean it is your business he can't fault them one example -- since it launched a year ago.
The Consumer Financial Protection Bureau has been cracking down on banks.
Debt collectors and student lenders but some savvy law firms.
He immediately put together teams to deal would be -- habitable lawsuits that would prompt.
Now they're making a pretty penny could -- higher fees for new that's.
Here the -- firm Ballard spar is Alan complaints he Allan thank you so much for joining us and again.
Here's out -- trying to make money you know everybody -- business for the same reason so I don't.
All different do this but he did set up a whole new venue -- -- basically that the Consumer Financial Protection Bureau right.
Yes Melissa although was a very natural outgrowth of my practice.
I've been practicing in this area for about forty years that is the area.
Of consumer finance and so it was very natural that when congress created.
This new agency.
That.
RR firm and our particular consumer Financial Services Group.
Would try to fit the that the needs of our clients which we're just enormous.
No absolutely and I know you have 75 lawyers in offices across the US and that you say about 25.
Of them are heavily involved in the related issues to the CF TV you also sat I think that -- never experienced an event like this that this is one of the most you know significant event is.
In the area -- that would make a -- But -- proud.
It would make her proud but I don't think it should make the country proud.
They this new bureau has radically restructured.
The banking in the consumer financial services industry.
And it I'd refer to -- often is the three headed monster.
There is a regulatory component.
A supervisory.
Your examination component and an enforcement component and ever since Richard court to -- Was appointed by President Obama in January of this year they have been moving very rapidly on all three -- on CN.
Unfortunately.
The net result is there there are doing a disservice.
Not just of the industry that I were present but to consumers themselves why isn't disservice to consumers.
Because.
-- they eat it what's going on here is that my clients my banking clients by non banking clients.
They won't make a move now without coming to needy and other lawyers saying.
What -- this CF PB think about this if they want to offer a new product to consumers very often.
Low income -- consumers or people who don't have -- perfect.
800 credit support so.
They're limiting the products they're offering which is not good war -- low income -- -- those that of those -- the lowest fees that the first people you're gonna cut -- the people who weren't spending a lot of money.
Also in and this is why I wanted to do this story.
If you go after banks and you go after credit card companies and you make them pay big settlements to consumers.
That money doesn't come out of thin air they turn around and pass that cost a long.
To their customers.
The same people also either way.
You're paying for this right -- at the end of the day salute the consumer is paying and that's what Elizabeth Warren doesn't tell you.
Absolutely.
And they do it as I said either by passing along the cost.
Or by restricting the availability of products to the people who really need the products I mean this whole thing.
Is an over reaction to the -- economic meltdown that we experienced.
That's right there was a problem but this was a crazy over reaction -- thanks for coming on we appreciate your insight.
My pleasure Melissa --
