Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) is an agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.

The CFPB's creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession.[2] The CFPB's status as an independent agency has been challenged in court but was upheld by United States Court of Appeals for the District of Columbia Circuit sitting en banc.

On June 16, 2018, President Donald Trump selected Kathleen Kraninger, a White House budget official, as the nominee to be the next director of the CFPB.[3][4]

Consumer Financial Protection Bureau
CFPB logo
Agency overview
FormedJuly 21, 2011
JurisdictionUnited States
HeadquartersWashington, D.C., U.S.
Employees1,623 (2016)[1]
Annual budgetUS$605.9 million (FY 2016)[1]
Agency executives
Key document
Websitewww.consumerfinance.gov

Role

According to former Director Richard Cordray, the Bureau's priorities are mortgages, credit cards and student loans.[2][5] The CFPB was designed to consolidate its employees and responsibilities from a number of other federal regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the National Credit Union Administration and even the Department of Housing and Urban Development.[6] The bureau is an independent unit located inside and funded by the United States Federal Reserve, with interim affiliation with the U.S. Treasury Department.

The CFPB writes and enforces rules for financial institutions, examines both bank and non-bank financial institutions, monitors and reports on markets, as well as collects and tracks consumer complaints.[5]

The CFPB opened its website in early February 2011 to accept suggestions from consumers via YouTube, Twitter, and its own website interface. According to the United States Treasury Department, the bureau is tasked with the responsibility to "promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services".[7] According to its web site, the CFPB's "central mission...is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products".[8] In 2016 alone most of the hundreds of thousands of consumer complaints about their financial services—including banks and credit card issuers—were received and compiled by CFPB and are publicly available on a federal government database.[9]

History

In July 2010, Congress passed the Dodd–Frank Wall Street Reform and Consumer Protection Act, during the 111th United States Congress in response to the Late-2000s recession and financial crisis.[2] The agency was originally proposed in 2007 by then Harvard Law School professor and current US senator Elizabeth Warren.[10] The proposed CFPB was actively supported by Americans for Financial Reform, a newly created umbrella organization of some 250 consumer, labor, civil rights and other activist organizations.[11]

On September 17, 2010, President Obama announced the appointment of Warren as Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau to set up the new agency.[12][13] Due to the way the legislation creating the bureau was written, until the first Director was in place, the agency was not able to write new rules or supervise financial institutions other than banks.[6]

On July 21, 2011 Senator Richard Shelby wrote an op‑ed for the Wall Street Journal affirming his continued opposition to a centralized structure, noting that both the Securities Exchange Commission and Federal Deposit Insurance Corporation had executive boards and that the CFPB should be no different. He noted lessons learned from experiences with Fannie Mae and Freddie Mac as support for his argument.[14] Politico interpreted Shelby's statements as saying that Cordray's nomination was "dead on arrival".[15] Republican threats of a filibuster to block the nomination in December 2011 led to Senate inaction.

The CFPB formally began operation on July 21, 2011, shortly after President Obama announced that Sen. Warren would be passed over as Director in favor of Richard Cordray,[16] who prior to the nomination had been hired as chief of enforcement for the agency.[17]

Nomination of Richard Cordray
President Barack Obama announces the nomination of Richard Cordray as the first director of the CFPB on July 18, 2011

Elizabeth Warren, who proposed and established the CFPB, was removed from consideration as the bureau's first formal director after Obama administration officials became convinced Warren could not overcome strong Republican opposition.[18] On July 17, President Obama nominated former Ohio Attorney General and Ohio State Treasurer Richard Cordray to be the first formal director of the CFPB.[19]

However, Cordray's nomination was immediately in jeopardy due to 44 Senate Republicans vowing to derail any nominee in order to encourage a decentralized structure of the organization. Senate Republicans had also shown a pattern of refusing to consider regulatory agency nominees.[20]

Since the CFPB database was established in 2011, more than 730,000 complaints have been published.[9] CFPB supporters include the Consumers Union claim that it is a "vital tool that can help consumers make informed decisions".[9] CFPB detractors argue that the CFPB database is a "gotcha game" and that there is already a database maintained by the Federal Trade Commission although that information is not available to the public.[9]

On January 4, 2012, Barack Obama issued a recess appointment to install Cordray as director through the end of 2013. This was a highly controversial move as the Senate was still holding pro forma sessions, and the possibility existed that the appointment could be challenged in court.[21] This type of recess appointment was unanimously ruled unconstitutional in NLRB v. Noel Canning.[22]

The constitutionality of Cordray's recess appointment came into question after a January 2013 ruling by the United States Court of Appeals for the District of Columbia Circuit that President Obama's appointment of three members to the NLRB (at the same time as Cordray) violated the Constitution.[23]

On July 16, 2013, the Senate confirmed Cordray as director in a 66–34 vote.[24]

The Financial CHOICE Act, proposed by the House Financial Services Committee's Jeb Hensarling, to repeal the Dodd–Frank Wall Street Reform and Consumer Protection Act, passed the House on June 8, 2017. Also in June 2017, the Senate was crafting its own reform bill.[25][26]

Testimony in US Congressional hearings of 2017 have elicited concerns that the wholesale publication of consumer complaints is both misleading and injurious to the consumer market. Rep. Barry Loudermilk, R-Ga., said at one such congressional hearing, “Is the purpose of the database just to name and shame companies? Or should they have a disclaimer on there that says it's a fact-free zone, or this is fake news? That's really what I see happening here.” Bill Himpler, executive vice president of the American Financial Services Association, a trade group representing banks and other lenders responded “Something needs to be done.” “Once the damage is done to a company, it's hard to get your reputation back.[9]

Proposed amendments

On July 11, 2013, the CFPB Rural Designation Petition and Correction Act (H.R. 2672; 113th Congress) was introduced into the House of Representatives. The bill would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act to direct the CFPB to establish an application process that would allow a person to have their county designated as "rural" for purposes of federal consumer financial law.[27] One practical effect of having a county designated rural is that people can qualify for some types of mortgages by getting them exempted from the CFPB's qualified mortgage rule.[28][29]

On September 26, 2013, the Consumer Financial Protection Safety and Soundness Improvement Act of 2013 (H.R. 3193; 113th Congress) was introduced into the United States House of Representatives.[30] If adopted, the bill would have modified the CFPB by transforming it into a five-person commission and removing it from the Federal Reserve System.[31] The CFPB would have been renamed the "Financial Product Safety Commission". The bill was also intended to make it easier to override the CFPB decisions. It passed in the House of Representatives on February 27, 2014 and was received by the Senate on March 4.[32] It was never considered in the Democratic controlled Senate.[33]

2017 dispute over acting director

On November 24, 2017, Director Cordray appointed Leandra English to the position of deputy director, and announced that he would leave office at the close of business that day.[34][35] Cordray indicated that would make English the acting director after his resignation,[36] citing provisions of the Dodd–Frank Wall Street Reform and Consumer Protection Act providing that the deputy director of the CFPB becomes acting director in the "absence or unavailability" of the director.[37] Later the same day, however, President Donald Trump appointed the incumbent director of the Office of Management and Budget, Mick Mulvaney, as acting director, citing the authority of the Federal Vacancies Reform Act of 1998.[37]

On November 25, the Office of Legal Counsel released an opinion, written by Assistant Attorney General Steven Engel, asserting that the President has the authority under the FVRA to designate an acting CFPB Director. The OLC memo maintained that "both the Vacancies Reform Act and [§1011(b)(5) of Dodd-Frank] are available for filling on an acting basis a vacancy that results from the resignation of the CFPB's Director" but that "when the President designates an individual...outside the ordinary order of succession, the President's designation necessarily controls."[38] This position was also supported by the General Counsel of the CFPB, Mary E. McLeod.[39][40]

On November 26, English (represented by former CFPB Senior Counsel Deepak Gupta) filed a lawsuit in the United States District Court for the District of Columbia seeking a temporary restraining order and declaratory judgment to prevent Mulvaney from becoming acting director,[41] Mulvaney was given access by unnamed individuals with the keys to the director's office on November 27 and ordered all CFPB employees to disregard any claims from English that she is the acting director.[42] Both English and Mulvaney sent emails to the entire 1,600-person staff of the CFPB, each signing as "Acting Director" of the agency.[43][44] On November 28, 2017, U.S. District Judge Timothy J. Kelly, who had been appointed by President Trump just a few months earlier, denied English's motion for a preliminary injunction and allowed Mulvaney to begin serving as CFPB Acting Director.[45]

Regulatory activities

From its creation until 2017, the CFPB "has curtailed abusive debt collection practices, reformed mortgage lending, publicized and investigated hundreds of thousands of complaints from aggrieved customers of financial institutions, and extracted nearly $12 billion for 29 million consumers in refunds and canceled debts."[46]

Mortgages

Regulatory implementation regarding mortgages is covered on the bureau website. Topics provided for consumers include, 2013 mortgage rule implementation, resources to help people comply, quick reference charts, supervision and examination materials, and a link for feedback. It also provides additional information that covers rural or under-served counties, HUD-approved housing counselors, and Appendix Q.[47]

Appendix Q relates to the debt-to-income ratio that must be possessed for "qualified mortgages" and provides details about how to determine the factors for that calculation. The standard is set at no more than 43 percent.

Retirement and insurance investments

The CFPB is weighing whether it should take on a role in helping Americans manage retirement savings and regulate savings plans, particularly focusing on investment scams that target the retired and elderly. "That's one of the things we’ve been exploring and are interested in in terms of whether and what authority we have”, bureau director Richard Cordray said in a January 2013 interview.[48] Some conservatives have been critical of this potential role, with William Tucker of the American Media Institute asserting that the agency intends to "control" retirement savings and force people to buy federal debt.[49] The AARP has encouraged the agency to take an active role, arguing that the bureau will help protect elderly Americans from affinity fraud that often targets senior citizens, ensuring that their investments are less likely to be stolen through securities fraud or malpractice.[50]

The main regulator of retirement and benefit plans established by employers and private industry is the U.S. Department of Labor, which enforces the main laws (ERISA, COBRA, and HIPAA), retirement plans (including 401(k), SIMPLE, 403(b), and traditional defined-benefit pensions) as well as many aspects of employer group-health plans. The Affordable Care Act, establishing marketplaces selling health plans directly to consumers, adopted the ERISA-style regulatory model, requiring all plans to have standardized documents such as a "summary plan document" (SPD), but the marketplace was regulated by the individual insurance commissioners of every state, with some states having multiple regulators (California maintains both a Department of Insurance and a Department of Managed Care). IRAs, also directed to consumers, are regulated by type of custodian (the FDIC regulates bank custodians, the IRS regulates non-bank custodians). Annuities, life insurance, and disability insurance purchased directly by consumers, are regulated by individual state insurance commissioners. Marketing to consumers is generally regulated by the FCC and various state laws.

Because state commissioners are the main regulators, the CFPB is unlikely to assume a leadership role in retirement investment regulation without further legislation and possibly a US constitutional amendment transferring insurance lawmaking power to the federal government. In 2011, the National Association of Insurance Commissioners identified "the single most significant challenge for state insurance regulators is to be vigilant in the protection of consumers, especially in light of the changes taking place in the financial services marketplace",[51] and the CFPB may help fill this void. Many have argued the state-based system of insurance regulation (including insurance-like products such as annuities) is highly economically inefficient, results in uneven and non-portable insurance plans, artificially shrinks risk pools (especially in smaller states) resulting in higher premiums, limits mobility of brokers who have to re-certify in new states, complicates the needs of multi-state business, and should be replaced with a national insurance regulator or national insurance charter option as has taken place with the regulation of securities and banking.[52][53]

Public outreach

The CFPB has created a number of personal finance tools for consumers, including Ask CFPB, which compiles plain-language answers to personal finance questions, and Paying for College, which estimates the cost of attending specific universities based on the financial aid offers a student has received.[54][55]

The CFPB has also attempted to help consumers understand virtual currencies such as Bitcoin.[56]

List of directors

Status
No. Portrait Name State of residence Took office Left office Days served Presidents
Elizabeth Warren Elizabeth Warren Massachusetts September 17, 2010 August 1, 2011 318 Barack Obama
Raj Date Raj Date Washington, D.C. August 1, 2011 January 4, 2012 156
1 Richard Cordray Richard Cordray Ohio January 4, 2012 November 24, 2017[57] 1843
308
(2151 total)
Donald Trump
Mick Mulvaney Mick Mulvaney South Carolina November 25, 2017 December 10, 2018 380
2 Mick Mulvaney Kathy Kraninger Ohio December 11, 2018 Incumbent 103

Legal challenges

Two lawsuits were filed in the early years of the CFPB; they were both dismissed by federal courts, but one was appealed and is still ongoing. The first one, filed in June 21, 2012, by a Texas bank along with the Competitive Enterprise Institute, challenged the constitutionality of provisions of the CFPB.[58] One year later, in August 2013, a federal judge dismissed the lawsuit because the plaintiffs had failed to show that they had suffered harm.[59] In July 2015, the Court of Appeals for the District of Columbia Circuit affirmed in part and reversed in part, holding that the bank, but not the states that later joined the lawsuit, had standing to challenge the law, and returned the case for further proceedings.[60][61]

A lawsuit filed July 22, 2013, by Morgan Drexen Integrated Systems, a provider of outsourced administrative support services to attorneys, and Connecticut attorney Kimberly A. Pisinski, challenged the constitutionality of the CFPB.[62][63] The complaint, filed in the U.S. District Court for the District of Columbia, alleged that the "CFPB's structure insulates it from political accountability and internal checks and balances in violation of the United States Constitution. Unbridled from constitutionally-required accountability, CFPB has engaged in ultra vires and abusive practices, including attempts to regulate the practice of law (a function reserved for state bars), attempts to collect attorney-client protected material, and overreaching demands for, and mining of, personal financial information of American citizens, which has prompted a Government Accountability Office ("GAO") investigation, commenced on July 12, 2013."[64] That October, this case was dismissed by a D.C. Federal Court.[65] On August 22, 2013, one month after Morgan Drexen's lawsuit, the CFPB filed its own lawsuit against Morgan Drexen in the United States District Court for the Central District of California alleging that Morgan Drexen charged advance fees for debt relief services in violation of the Telemarketing Sales Rule and engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA).[66] The CFPB won this lawsuit and Morgan Drexen was ordered to pay $132,882,488 in restitution and a $40 million civil penalty.[67]

In October 2016, the United States Court of Appeals for the District of Columbia Circuit ruled that it was unconstitutional for the CFPB Director to be removable by the President of the United States only for cause, such as "inefficiency, neglect of duty or malfeasance."[68] Circuit Judge Brett Kavanaugh, joined by Senior Circuit Judge A. Raymond Randolph, wrote that the law was "a threat to individual liberty" and instead found that the President could remove the CFPB Director at will.[68] The ruling essentially makes the CFPB part of the United States federal executive departments. Circuit Judge Karen L. Henderson agreed that the CFPB Director had been wrong in adopting a new interpretation of the Real Estate Settlement Procedures Act, finding the statute of limitations did not apply to the CFPB, and fining the petitioning mortgage company PHH Corporation $109 million, but she dissented from giving the President a new power to remove the Director, citing constitutional avoidance.[69] The U.S. Court of Appeals for the District of Columbia Circuit vacated the decision and ordered en banc review.[70] On January 31, 2018, the en banc D.C. Circuit found that the CFPB's structure was constitutional by a vote of 7-3. Judge Cornelia Pillard, writing for the majority, found that the Take Care Clause does not forbid independent agencies, while each of the circuit judges from the earlier panel wrote separate dissents.[71]

In June 2018, a New York Federal District Court judge ruled against its structure.[72]

Controversy

A 2013 press release from the United States House Financial Services Committee criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance and who exercises sole control over the agency, its hiring and its budget." Moreover, the committee alleged a lack of financial transparency and a lack of accountability to Congress or the President. Committee Vice Chairman Patrick McHenry, expressed particular concern about travel costs and a $55 million renovation of CFPB headquarters, stating "$55 million is more than the entire annual construction and acquisition budget for GSA for the totality of federal buildings."[73] In 2012, the majority of GSA's Federal Buildings Fund went to rental costs, totaling $5.2 billion. $50 million was budgeted for construction and acquisition of facilities.[74]

In 2014, some employees and former employees of the CFPB testified before Congress about an alleged culture of racism and sexism at the agency. Former employees testified they were retaliated against for bringing problems to the attention of superiors.[75]

As described in 2015 Wall Street Journal article, the CFPB has been criticized for the methodology it uses to identify instances of racial discrimination among auto lenders. Because of legal constraints, the agency used a system to "guess" the race of auto loan applicants based on their last name and zip code. Based on that information, the agency charged several lenders were discriminating against minority applicants and levied large fines and settlements against those companies. Ally Financial paid $98 million in fines and settlement fees in 2013. As the agency's methodology means it can only guess who may be victims of discrimination entitled to settlement funds, as of late 2015 the CFPB had yet to compensate any individuals who were victims of Ally's allegedly discriminatory practices.[76]

Cordray was accused of multiple violations of the Hatch Act as Director of the CFPB and investigated by the Office of Special Counsel (OSC), who found no violations.[77]

Amendments

On May 21, 2018, US President Donald Trump signed into law Congressional legislation repealing the enforcement of automobiles lending rules.[78] On May 24, 2018, Trump signed into law further Congressional legislation exempting dozens of banks from the CFPB's regulations.[79]

See also

References

  1. ^ a b "The CFPB strategic plan, budget, and performance plan and report" (PDF). United States Consumer Financial Protection Bureau. February 1, 2016. Retrieved April 22, 2016.
  2. ^ a b c Eaglesham, Jean (February 9, 2011). "Warning Shot On Financial Protection". The Wall Street Journal. Retrieved February 10, 2011.(subscription required)
  3. ^ O'Donnell, Katy; White, Ben (June 16, 2018). "Trump's little-known pick to lead consumer bureau sets up fight with Congress". Politico. Retrieved June 17, 2018.
  4. ^ Thrush, Glenn (June 16, 2017). "White House Confirms That Mulvaney Deputy Is Pick to Lead Consumer Bureau". New York Times. Retrieved June 17, 2017.
  5. ^ a b Warren, Elizabeth (September 14, 2010). "FACTBOX-New US consumer financial bureau has wide powers". Reuters. Retrieved February 10, 2011.
  6. ^ a b Bureau of Consumer Financial Protection, topics.nytimes.com Updated: December 8, 2011
  7. ^ "Consumer Financial Protection Bureau Website Launched and Open for Suggestions". mybanktracker.com. February 7, 2011. Retrieved February 10, 2011.
  8. ^ "Learn About the Bureau". United States Consumer Financial Protection Bureau. Retrieved February 10, 2011.
  9. ^ a b c d e Kevin Freking (April 23, 2017). "Public window on financial complaints could be closing soon". Washington. Associated Press. Retrieved April 23, 2017.
  10. ^ Mogilnicki EJ, Malpass MS. The First Year of the Consumer Financial Protection Bureau: An Overview. The Business Lawyer.
  11. ^ Kirsch, Larry; Mayer, Robert (2013). Financial justice : the people's campaign to stop lender abuse. Santa Barbara: Praeger. ISBN 1440829519.
  12. ^ Obama names Warren as special adviser. CNN Money.
  13. ^ "President Obama Names Elizabeth Warren Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau". www.WhiteHouse.gov. Retrieved December 17, 2014.
  14. ^ Shelby, Richard (July 21, 2011). "The Danger of an Unaccountable 'Consumer-Protection' Czar". The Wall Street Journal. p. A17. Retrieved July 22, 2011.(subscription required)
  15. ^ Epstein, Reid J. (July 21, 2011). "Richard Shelby: Richard Cordray is DOA". Politico. Retrieved July 22, 2011.
  16. ^ Appelbaum, Binyamin (July 17, 2011). "Former Ohio Attorney General Picked to Lead Consumer Agency". New York Times. Retrieved July 17, 2011.
  17. ^ Bennett D, Dougherty C. (2011). Elizabeth Warren's Dream Becomes a Real Agency She May Never Get to Lead. Bloomberg.
  18. ^ Puzzanghera, Jim (September 7, 2011). "GOP stalls confirmation of consumer agency nominee". Los Angeles Times.
  19. ^ Appelbaum, Binyamin (July 17, 2011). "Former Ohio Attorney General Picked to Lead Consumer Agency". The New York Times. Retrieved July 17, 2011.
  20. ^ Wyatt, Edward (July 18, 2011). "Dodd–Frank Under Fire a Year Later". New York Times. Retrieved July 22, 2011.
  21. ^ Nakamura, David; Sonmez, Felicia (January 4, 2012). "Obama to use executive power to name consumer watchdog chief over GOP objections". The Washington Post. Retrieved January 4, 2012.
  22. ^ https://www.vox.com/2014/6/26/5843366/recess-appointments-supreme-court
  23. ^ Savage, David G. (January 25, 2013). "Court rules Obama recess appointments unconstitutional". Los Angeles Times. Retrieved May 3, 2013.
  24. ^ Peralta, Eyder (July 16, 2013). "Cooling Tensions, Senate Confirms Cordray". NPR. Retrieved July 19, 2013.
  25. ^ Borak, Donna (June 8, 2017). "House votes to kill Dodd-Frank. Now what?". Retrieved June 9, 2017. ..."advanced the 'crown jewel' of the GOP-led regulatory reform effort, effectively gutting the Dodd-Frank financial regulations that were put in place during the Obama administration."
  26. ^ Bryan, Bob (June 9, 2017). "The House quietly voted to destroy post-financial-crisis Wall Street regulations". Business Insider. Retrieved June 9, 2017.
  27. ^ "H.R. 2672 – Summary". United States Congress. Retrieved May 4, 2014.
  28. ^ Marcos, Cristina (May 2, 2014). "The week ahead: House to hold ex-IRS official in contempt". The Hill. Retrieved May 5, 2014.
  29. ^ "Dodd–Frank Dispatch: "Rural Area" Designation Would Provide Consumer Financial Protection Laws Relief". BankersWEB.com. March 17, 2014. Retrieved May 5, 2014.
  30. ^ "H.R. 3193 – Summary". United States Congress. Retrieved February 11, 2014.
  31. ^ Kasperowicz, Pete (February 7, 2014). "House to take another swing at Dodd–Frank reform". The Hill. Retrieved February 11, 2014.
  32. ^ "H.R. 3193 – Consumer Financial Freedom and Washington Accountability Act". congress.gov. Retrieved October 17, 2015.
  33. ^ Lunsford, Patrick (March 5, 2015). "CFPB Reform Bill Introduced in House Designed to Pass Congress". insidearm.com. Retrieved October 17, 2015.
  34. ^ "Note to staff from Director Cordray".
  35. ^ Tara Siegel Bernard, Dueling Appointments Lead to Clash at Consumer Protection Bureau, New York Times (November 24, 2017).
  36. ^ "Leandra English Named Deputy Director of the Consumer Financial Protection Bureau". Washington, D.C.: Consumer Financial Protection Bureau. November 24, 2017. Retrieved November 25, 2017.
  37. ^ a b Alison Frankel, CFPB's controversial structure looms over leadership showdown, Reuters (November 27, 2017).
  38. ^ "Memorandum for Donald F. McGahn II, Counsel to the President" (PDF).
  39. ^ Merle, Renae (November 26, 2017). "Leandra English, the woman at the center of a White House battle for control of the CFPB, files lawsuit against Trump pick to lead watchdog agency". The Washington Post. ISSN 0190-8286. Retrieved November 27, 2017.
  40. ^ Woellert, Lorraine (November 26, 2017). "Consumer bureau's top lawyer sides with Trump in leadership clash". Politico. Retrieved November 27, 2017.
  41. ^ Cowley, Stacy (November 26, 2017). "Battle for Control of Consumer Agency Heads to Court". The New York Times. ISSN 0362-4331. Retrieved November 27, 2017.
  42. ^ Merle, Renae (November 27, 2017). "At the CFPB, two acting directors show up to take command; one brings doughnuts, the other well-wishes". The Washington Post. ISSN 0190-8286. Retrieved November 27, 2017.
  43. ^ Katie Rogers, Consumer Financial Protection Bureau Has 2 Bosses Claiming Control, New York Times (November 27, 2017).
  44. ^ Patrick Rucker, Richard Cowan, Directors duel over control of U.S. consumer protection agency, Reuters (November 27, 2017).
  45. ^ Rogers, Katie; Bernard, Tara Siegel (29 November 2017). "President Wins Round in the Battle for the Consumer Bureau". The New York Times. p. A16. Retrieved 4 April 2018.
  46. ^ Steve Eder, Jessica Silver-Greenberg & Stacy Cowley, Republicans Want to Sideline This Regulator. But It May Be Too Popular, New York Times (August 31, 2017).
  47. ^ Consumer Financial Protection Bureau, Law and Regulation, Mortgage Rule Implementation Regulatory Implementation, retrieved 2014.01.25
  48. ^ Retirement Savings Accounts Draw U.S. Consumer Bureau Attention, Carter Dougherty, Bloomberg News, 18 January 2013
  49. ^ Financial Repression From The Obama Administration: How Savers May Be Forced To Buy Federal Debt, William Tucker, Forbes.com, December 23, 2013
  50. ^ 6 Ways the Consumer Financial Protection Bureau Will Fight for You, Carole Fleck, AARP, March 1, 2012
  51. ^ "STATE INSURANCE REGULATION" (PDF). Center for Insurance Policy Research.
  52. ^ "Improving Property and Casualty Regulation in the United States" (PDF). McKinsey and Company. Archived from the original (PDF) on November 7, 2013.
  53. ^ "Insurance Companies need a Federal Regulator". Wall Street Journal.
  54. ^ Maya Jackson Randall (March 22, 2012). "Consumer-protection agency launches 'Ask CFPB' tool". The Wall Street Journal. Retrieved August 7, 2013.
  55. ^ Liberto, Jennifer (April 11, 2012). "Compare College Costs with Online Tool". CNNMoney. Retrieved August 8, 2013.
  56. ^ "Risks to Consumers Posed by Virtual Currencies" (PDF). consumerfinance.gov. August 1, 2014. Retrieved October 6, 2014.
  57. ^ Wattles, Jackie (November 24, 2017). "Richard Cordray resigns as head of Consumer Financial Protection Bureau". CNN Money.
  58. ^ Hall, Christine. "Dodd–Frank Unconstitutional Power-Grab, Says New Lawsuit". Competitive Enterprise Institute. Competitive Enterprise Institute.
  59. ^ "Standing Alone, But Firm; Morgan Drexen Presses Forth in Lawsuit Against the Consumer Financial Protection Bureau". GlobeNewswire. August 2, 2013. Retrieved May 18, 2014.
  60. ^ Adler, Jonathan H. (July 24, 2015). "D.C. Circuit revives constitutional challenge to Consumer Financial Protection Bureau". Washington Post. Retrieved August 10, 2015.
  61. ^ State National Bank of Big Spring, et al. v. Lew, no. 13-5247 (D.C. Cir, July 24, 2015).
  62. ^ Pollock, Richard (July 23, 2013). "Private firm sues CFPB, challenges board's constitutionality". Washington Examiner. Retrieved August 11, 2013.
  63. ^ Karmasek, Jessica M. (August 10, 2013). "Conn. attorney, support services provider sue CFPB over alleged 'data mining'". Legal Newsline. Retrieved August 11, 2013.
  64. ^ "Morgan Drexen Filings". Morgan Drexen. Retrieved August 11, 2013.
  65. ^ Mishkin, Barbara S. (October 21, 2013). "D.C. federal court dismisses Morgan Drexen lawsuit against CFPB". CFPBMonitor.com. Retrieved November 5, 2014.
  66. ^ Kaplinsky, Alan (August 23, 2013). "A tale of two lawsuits: CFPB sues Morgan Drexen". JD Supra Law News. Retrieved November 8, 2013.
  67. ^ "CFPB Wins Final Judgment Against Morgan Drexen for Illegal Debt-Relief Scheme". March 18, 2016. Retrieved June 17, 2016.
  68. ^ a b Cowley, Stacy (October 12, 2016). "Court Upholds Consumer Agency, Minus Its Leader's Job Security". The New York Times. p. B2. Retrieved October 18, 2016.
  69. ^ Frankel, Alison (October 11, 2016). "The D.C. Circuit's gratuitous ruling on CFPB constitutionality". Reuters. Retrieved October 18, 2016.
  70. ^ https://law.justia.com/cases/federal/appellate-courts/cadc/15-1177/15-1177-2017-02-16.html, Accessed November 27, 2017
  71. ^ Weiss, Debra Cassens (31 January 2018). "Full DC Circuit upholds structure of Consumer Financial Protection Bureau". ABA Journal. Retrieved 5 April 2018.
  72. ^ Hayashi, Yuka (22 June 2018). "Judge Rules Against Bureau's Structure". The Wall Street Journal (Vol. CCLXXI, No. 145). Dow Jones/News Corp. p. A5.
  73. ^ Jeb Hensarling (June 18, 2013). "CFPB Lacks Oversight and Accountability". U.S. House of Representatives Financial Services Committee. Archived from the original (Press release) on May 16, 2017. Retrieved May 18, 2017.
  74. ^ "FY 2013 Congressional Justification". General Services Administration. February 13, 2012. p. 3. Archived from the original (PDF) on May 18, 2017. Retrieved May 18, 2017.
  75. ^ Devaney, Tim (June 18, 2014). "Ex-staffer: CFPB run like a 'plantation'". The Hill.
  76. ^ Andriotis, Annamaria (October 29, 2015). "U.S. Government Uses Race Test for $80 Million in Payments". The Wall Street Journal.
  77. ^ https://www.consumerfinancemonitor.com/wp-content/uploads/sites/14/2017/11/CordrayHatch.pdf
  78. ^ Warmbrodt, Zachary (May 21, 2018). "Trump signs bill blocking consumer bureau auto-lending measure". Politico. Retrieved May 25, 2018.
  79. ^ Sherman, Erik (May 24, 2018). "Scaling back Dodd-Frank is just the beginning of Trump's run on deregulation". NBC News. Retrieved May 25, 2018.

Further reading

External links

Ben Konop

Benjamin Zachary Konop (born March 1, 1976) is an Enforcement Attorney at the Consumer Financial Protection Bureau in Washington, D.C.. He also was a law professor and attorney in private practice. Formerly, he served as Lucas County Commissioner from 2007–2010. He ran unsuccessfully for Mayor of Toledo, Ohio in 2009. During the campaign a heckler booed him and called him a liar for going back on his pledge to remain in his county commissioner seat until his full term was up. A video of the booing incident went viral on YouTube and was even spoofed on Comedy Central's South Park. Konop’s interview about his political career and the incident was part of The Huffington Post’s 2017 Webby nominated podcast series “Candidate Confessional” with Sam Stein and Jason Cherkis.Konop also ran unsuccessfully as the Democratic Party candidate in Ohio's 4th congressional district for the United States House of Representatives in 2004.

Bitcoin ATM

A Bitcoin ATM is a kiosk that allows a person to purchase Bitcoin by using cash or debit card. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. In some cases, Bitcoin ATM providers require users to have an existing account to transact on the machine.

There are two main types of Bitcoin machines: cash kiosks and ATMs. Both types are connected to the Internet, allowing for cash or debit card payment, respectively, in exchange for bitcoins given as a paper receipt or by moving money to a public key on the blockchain. Bitcoin cash kiosks look like traditional ATMs, but do not connect to a bank account and instead connect the user directly to a Bitcoin exchange. Bitcoin-enabled ATMs are traditional ATMs and connect to a bank account to allow for a cashless purchase of bitcoin. According to an advisory issued by the Consumer Financial Protection Bureau, "they may also charge high transaction fees – media reports describe transaction fees as high as 7% and exchange rates $50 over rates you could get elsewhere".

CFPB Rural Designation Petition and Correction Act

The CFPB Rural Designation Petition and Correction Act (H.R. 2672) is a bill that would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to direct the Consumer Financial Protection Bureau (CFPB) to establish an application process that would allow a person to get their county designated as "rural" for purposes of a federal consumer financial law. One practical effect of having a county designated "rural" is that people can qualify for some types of mortgages by getting them exempted from the CFPB's qualified mortgage rule.The bill was introduced in the United States House of Representatives during the 113th United States Congress.

Comprehensive Capital Analysis and Review

Comprehensive Capital Analysis and Review (CCAR) is a United States regulatory framework introduced by the Federal Reserve to assess, regulate, and supervise large banks and financial institutions – collectively referred to in the framework as bank holding companies (BHCs).

The assessment is conducted annually and consists of two related programs:

Comprehensive Capital Analysis and Review

Dodd–Frank Act supervisory stress testingThe core part of the program assesses whether:

BHCs possess adequate capital.

The capital structure is stable given various stress-test scenarios.

Planned capital distributions, such as dividends and share repurchases, are viable and acceptable in relation to regulatory minimum capital requirements.The assessment is performed on both qualitative and quantitative bases. The Federal Reserve may order banks to suspend their planned capital distributions to shareholders until the target capital balance is restored.

Consumer Financial Protection Bureau v. RD Legal Funding, LLC

Consumer Financial Protection Bureau v. RD Legal Funding, LLC, 332 F. Supp. 3d 729 (S.D.N.Y. 2018), was a lawsuit by the Consumer Financial Protection Bureau (CFPB) and the Attorney General of New York against Defendants RD Legal Funding, LLC, RD Legal Finance, LLC, RD Legal Funding Partners, LP and Roni Dersovitz, the founder and owner of the RD Entities.

On June 21, 2018, Senior U.S. District Judge Loretta Preska held that Title X of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which established the CFPB as an independent bureau within the Federal Reserve System, is unconstitutional. This holding is in contrast with the en banc holding of the United States Court of Appeals for the District of Columbia Circuit in PHH Corp. v. Consumer Financial Protection Bureau, and partially adopts the separate dissents of Judge Brett Kavanaugh and Judge Karen L. Henderson in that case.

The Consumer Financial Protection Bureau filed an appeal with the United States Court of Appeals for the Second Circuit on September 14, 2018.

Consumer Financial Protection Safety and Soundness Improvement Act of 2013

The Consumer Financial Protection Safety and Soundness Improvement Act of 2013 (H.R. 3193) is a bill that would restructure the Consumer Financial Protection Bureau (CFPB) by transforming it into a five-person commission and removing it from the Federal Reserve System. The CFPB would be renamed the "Financial Product Safety Commission." This bill is also intended to make overturning the decisions about regulations that the new commission makes easier to do.The Consumer Financial Protection Safety and Soundness Improvement Act of 2013 was introduced into the United States House of Representatives during the 113th United States Congress.

Darren Gersh

Darren Gersh was the Washington, D.C. bureau chief for the PBS show, Nightly Business Report. He is currently a Senior Media Relations Specialist for the Federal Reserve. He was not retained when CNBC bought out the show in March, 2013. Gersh joined the Consumer Financial Protection Bureau on June 3, 2013.Gersh was educated at Yale University. He produced numerous segments for NBR including many specials with in depth coverage of the economies, cultures and issues relating to foreign countries such as China and Vietnam. He has won an Emmy.

David Silberman (government administrator)

David M. Silberman is an American government administrator who currently serves as the Associate Director for Research, Markets, and Regulation at the Consumer Financial Protection Bureau. Silberman also previously served as the agency's Acting Deputy Director, until the appointment of Leandra English to the office.

Elizabeth Warren

Elizabeth Ann Warren (née Herring; born June 22, 1949) is an American politician and academic serving as the senior United States Senator from Massachusetts since 2013. Warren was formerly a prominent scholar specializing in bankruptcy law. A noted progressive leader, Warren has focused on consumer protection, economic opportunity, and the social safety net while in the Senate. Some commentators describe her position as left-wing populism.Warren is a graduate of the University of Houston and Rutgers Law School. She taught law at several universities, including the University of Houston, the University of Texas at Austin, the University of Pennsylvania, and Harvard University.

Warren's initial foray into public policy began in 1995 when she worked to oppose what eventually became a 2005 act restricting bankruptcy access for individuals. Her profile rose due to her forceful stances in favor of more stringent banking regulations following the 2007–2008 financial crisis. She served as chair of the Congressional Oversight Panel of the Troubled Asset Relief Program and was instrumental in the creation of the Consumer Financial Protection Bureau, for which she served as the first Special Advisor.

On February 9, 2019, at a rally in Lawrence, Massachusetts, Warren announced her candidacy for the 2020 United States presidential election.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681, is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. To that end, the FCRA regulates the collection, dissemination, and use of consumer information, including consumer credit information. Together with the Fair Debt Collection Practices Act (FDCPA), the FCRA forms the foundation of consumer rights law in the United States. It was originally passed in 1970, and is enforced by the US Federal Trade Commission, the Consumer Financial Protection Bureau and private litigants.

Holly Petraeus

Hollister K. "Holly" Petraeus (née Knowlton; born July 17, 1952) is a retired Assistant Director at the Consumer Financial Protection Bureau (CFPB), where she headed up the Office of Servicemember Affairs. She retired on January 12, 2017. Her work at the CFPB centered around educating service members on sound financial management and protecting them against predatory lending and cons. She is the wife of retired General David Howell Petraeus.

Kathy Kraninger

Kathleen Laura Kraninger (born December 28, 1974) is an American government official serving as Director of the Consumer Financial Protection Bureau since December 6, 2018. She previously worked in the White House Office of Management and Budget in the Trump administration.She is a graduate of Marquette University, where she studied history and political science and earned her certification to teach high school social studies. After graduation from college, she taught as a Peace Corps volunteer in the Ukraine, which redirected her professional career to government services. She has served since then in various US government offices.

Kent Markus

Kent Richard Markus (born February 1, 1959) is an American lawyer and experienced federal and state government senior manager and leader. He currently works as a Senior Advisor in the Director's Office at the Consumer Financial Protection Bureau. Prior to joining the start-up Consumer Bureau, Markus served as Counselor and Chief Legal Counsel to Ohio's Governor [Ted Strickland] and a law professor and director of a child and family research and advocacy center at Capital University Law School. During the administration of President Clinton he was a senior official at the U.S. Department of Justice and before that had served as Chief of Staff in the Ohio Attorney General's office. Markus was also a federal judicial nominee to the U.S. Court of Appeals for the Sixth Circuit.

Leandra English

Leandra English is an American government official who served as the Deputy Director of the Consumer Financial Protection Bureau (CFPB) from 2017 until her resignation in 2018. She was the plaintiff in the lawsuit English v. Trump, in which she sought to have herself acknowledged as Acting Director of the CFPB.

Mick Mulvaney

John Michael Mulvaney (; born July 21, 1967) is an American politician of the Republican Party who is serving in President Donald Trump's cabinet as Director of the Office of Management and Budget (OMB), as well as acting White House Chief of Staff. Mulvaney also served as the acting Director of the Consumer Financial Protection Bureau (CFPB) from November 2017 to December 2018.

Mulvaney served in the South Carolina General Assembly from 2007 to 2011, first in the State House of Representatives and then the State Senate. He served as a U.S. House Representative from 2011 to 2017. He was nominated as OMB Director by President-elect Donald Trump in December 2016 and confirmed by Senate vote (51–49) on February 16, 2017.Mulvaney was known for his support for fiscal conservatism as a congressman. However, as OMB Director, he oversaw a dramatic expansion in the deficit and expressed support for Keynesian ideas which he had previously rejected. The deficit increases were a result of both spending increases and tax cuts, and were unusually high for a period of economic expansion. In 2019, with regard to its potential mention in an upcoming State of the Union speech, Mulvaney said that "nobody cares" about the deficit.

Raj Date

Rajeev V. Date is a businessman and investment advisor who was the first deputy director of the United States Consumer Financial Protection Bureau. He had previously served in a variety of leadership positions at the Bureau, including several months as the startup agency's leader, as the Special Advisor to the Secretary of the Treasury. He is credited with guiding the Consumer Financial Protection Bureau's early strategic, operational, and policy initiatives.

Date graduated from the college of engineering at the University of California, Berkeley, and from the Harvard Law School.Prior to joining the Consumer Financial Protection Bureau, he worked as a senior vice president at Capital One and as a managing director at Deutsche Bank. He left the banking industry in 2009 to start the Cambridge Winter Center, a nonprofit think tank devoted to promoting the regulation of financial firms.Date joined the bureau in February 2011 as associate director of research, markets and regulations, where he oversaw work on credit cards and mortgages. He succeeded Elizabeth Warren as special advisor when she stepped down from the agency on August 1, 2011. His appointment as special advisor came with controversy, as it was reported that prior to joining, Date had an active role in the talks over the Dodd-Frank act while being paid by a peer-to-peer lender, Prosper Marketplace, which sought to make key changes to the legislation. Date was never found to be in violation of any laws and recused himself from rulemaking regarding peer-to-peer lending. After leaving the Consumer Financial Protection Bureau Date founded Fenway Summer, a hybrid advisory and venture investment firm based in Washington DC. He serves on a number of boards of directors, including those of the marketplace lender Prosper, the student lender College Ave, the cryptocurrency firm Circle, and the bank holding company Green Dot. Date also chairs the investment committee at Fenway Summer Ventures, and counsels clients through the advisory firm FS Vector.

Richard Cordray

Richard Adams Cordray (born May 3, 1959) is an American lawyer and politician who served as the first Director of the Consumer Financial Protection Bureau (CFPB) from 2012 to 2017. Prior to his appointment, Cordray variously served as Ohio's Attorney General, Solicitor General, and Treasurer. He was the Democratic nominee for Governor of Ohio in 2018.

Cordray was raised near Columbus, Ohio and attended Michigan State University. He was subsequently a Marshall Scholar at Brasenose College, Oxford and then attended the University of Chicago Law School, where he was editor-in-chief of the Law Review. He clerked for Judge Robert Bork on the U.S. Court of Appeals for the District of Columbia Circuit and for Justice Anthony Kennedy of the Supreme Court of the United States. In 1987 he became an undefeated five-time Jeopardy! champion.

Cordray was elected to the Ohio House of Representatives in 1990. After redistricting, Cordray decided to run for the United States House of Representatives in 1992 but was defeated. The following year he was appointed by the Ohio Attorney General as the first Solicitor General of Ohio. His experience as Solicitor led to his appearance before the United States Supreme Court to argue six cases. Following Republican victories in Ohio statewide elections in 1994, Cordray left his appointed position and entered the private practice of law. While in private practice he unsuccessfully ran for Ohio Attorney General in 1998 and the United States Senate in 2000. He was elected Franklin County treasurer in 2002 and reelected in 2004 before being elected Ohio State Treasurer in 2006.

Cordray was elected Ohio Attorney General in November 2008 to fill the remainder of the term ending in January 2011. In 2010, Cordray lost his bid for reelection to former U.S. Senator Mike DeWine. He became Director of the CFPB via recess appointment in July 2011 and was confirmed by the Senate in 2013. Cordray left the agency in late 2017 to run for governor of Ohio, an election he lost to DeWine.

Rohit Chopra

Rohit Chopra is an American consumer advocate and a Commissioner on the Federal Trade Commission. He is closely associated with efforts to reform the student loan system in the United States. He was previously Assistant Director of the Consumer Financial Protection Bureau. He was appointed by the Secretary of the Treasury as agency's first Student Loan Ombudsman, established by the Dodd–Frank Wall Street Reform and Consumer Protection Act. On October 19, 2017, the White House announced its intent to nominate Chopra to fill the open Democratic seat on the Federal Trade Commission. On April 26, 2018, the United States Senate unanimously confirmed Chopra's nomination to serve as a Commissioner on the Federal Trade Commission. On May 2, 2018, Chopra was sworn in as a Commissioner and took office.

Skip Humphrey

Hubert Horatio "Skip" Humphrey III (born June 26, 1942) is a former Minnesota politician who served as Attorney General of the state (1983–99) and State Senator (1973–83). Humphrey led the Office of Older Americans as the Assistant Director at the Consumer Financial Protection Bureau (CFPB).

A Democrat, Humphrey is the son of the late Vice President Hubert Humphrey and the late U.S. Senator Muriel Humphrey Brown. He was the Democratic candidate for Minnesota governor in the hotly contested three-way election of 1998.

Federal authorities
Major federal legislation
Federal Reserve Board
regulations
Types of bank charter
State authorities
Terms
Other topics
By region
United States-specific
Banking losses and fraud
Government entities
Securities involved
and financial markets
Social responses
Related topics
Directors of the Consumer Financial Protection Bureau
Special Advisor
2010–2012
Director
2012–present

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.