A provision in the Dodd-Frank Act allows the Consumer Financial Protection Bureau to pay consumer advocate groups to lobby for Richard Cordray’s nomination to direct the bureau.
Senate Banking Committee Ranking Member Richard Shelby (R-Ala.) said that Sec. 1013 (d) of the Dodd-Frank Act allows the CFPB to pay endless amounts of money to its political allies in order to promote their “educational” efforts, according to AmericanBanker.com.
Andrew Kahr, the founding chief executive of First Deposit, wrote that both the CFPB and “self-described consumerist organizations” lobby for Cordray's confirmation in order to expand the bureau’s power.
“Both want to restrict consumers' choices, as does Sen. Menendez, who has again proposed a bill to limit fees on prepaid cards,” Kahr wrote, AmericanBanker.com reports.
Sen. Robert Menendez (D-N.J.) recently introduced legislation to ban excessive prepaid card fees.
Seven consumerist organizations sent Raj Date, the CFPB’s acting director, a joint letter urging more fee limits on prepaid cards.
Kahr wrote that the CFPB is warped, misdirected and unneeded, according to AmericanBanker.com.
The CFPB and its nonprofit affiliates’ “educational” campaigns are comparable to Acorn, receiving millions of dollars in government money, Kahr wrote.
“Its [government] affiliates' "educational" antics included picketing the homes of lending managers,” Kahr wrote, according to AmericanBanker.com. “After 40 years, Acorn finally cratered when evidence of misconduct could no longer be concealed and Obama signed the Acorn Defunding Act in 2010.”