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CFPB’s Cordray speaks to Consumer Advisory Board about consumer financial market

Richard Cordray

Richard Cordray

CFPB Director Richard Cordray spoke before the Consumer Advisory Board on Wednesday on agency efforts to make changes in the consumer financial industry, as well as in financial products and services.

The CFPB finalized its remittance rule last month, which is designed to bring enhanced protections to individuals who transfer money or receive money transfers

“In the wake of our finalizing the new remittance rule, we are hearing that other countries are watching closely to see how the new process works out and are considering the adoption of similar provisions to govern remittance transfers by their citizens as well,” Cordray said in prepared remarks. “As is the case in all financial markets, a better and sounder process will build consumer confidence and attract consumer demand over time…New protections against errors should also bolster confidence that this mechanism is transferring funds is worthy of trust and confidence.”

Cordray said that, in the agency’s mission, financial literacy and knowledge “play an independent role in the free market economy.”

“And so we are now making a strong push for making more personal finance education available to everyone in this country,” Cordray said. “Our efforts range from methods of instruction for students enrolled in our K-12 schools to a new ‘Money Smart’ curriculum we are currently developing with the FDIC that will be made available to older Americans.”

Additionally, the CFPB unveiled on Wednesday its CFPB en Español, which will provide Spanish-speaking citizens with access to clear information about financial products and services.

“We want to expand our website to include more Spanish resources and then to build more tools in other languages so that we can reach as many consumers as effectively as possible,” Cordray said. “We also are mindful of our responsibility to make sure that the costs, risks, and terms of financial products and services are understandable for consumers. We believe that foreign language disclosures and customer service communications are critical parts of this broader responsibility.”

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