Washington, D.C. – Today, Consumer Financial Protection Bureau Director Richard Cordray will present the Bureau’s semi-annual report to the Senate Committee on Banking, Housing and Urban Affairs. This hearing follows a hearing early this week that called into question the independence of the CFPB and criticized many of the new financial protections under consideration, such as pending rules that will cover payday loans or prepaid cards. In advance of the report, the Consumer Federation of America reiterated the accountability of the Bureau, and urged support for its critical work to protect consumers from abusive practices.
“The CFPB is accountable to both Congress and the public,” said Rachel Weintraub, Legislative Director and General Counsel at the Consumer Federation of America. “The Bureau’s rules are subject to review and possible veto by other regulators. No other regulator can be overridden in this manner.”
Since its creation in 2011, the CFPB has returned more than $10 billion in relief to consumers and has received more than 650,000 complaints from consumers facing problems with financial products ranging from credit cards to debt collection.
“The Bureau’s complaint system gives consumers a voice when they have been unable to resolve complicated and often frustrating financial issues,” said Tom Feltner, Director of Financial Services at Consumer Federation of America. “These complaints, along with the thorough and objective research conducted by Bureau staff, should greatly inform when and how new financial protections should apply.”
Currently, the CFPB is considering new consumer protections to prevent some of the worst practices associated with payday loans, protect consumers from repeat overdrafts, eliminate abusive debt collection practices and put in place other much-needed rules.
“CFA urges members of the Senate Committee on Banking, Housing and Urban Affairs to pay particular attention to the harm caused by abusive products and practices and support the Bureau’s work to make the financial marketplace fair and transparent,” said Weintraub.
CFA is an association of more than 250 nonprofit consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.