News

Cordray outlines vigorous enforcement and oversight agenda

Richard CordrayRichard Cordray, the new director of the Consumer Financial Protection Bureau, outlined a vigorous enforcement and oversight agenda on Thursday and said that there would be consequences for financial companies that take advantage of consumers.
 
During a speech at the Brookings Institution, Cordray encouraged consumers to contact the agency through its website with complaints about banks, financial institutions and payday lenders that they believe have engaged in abusive behavior or sold deceptive products, Blue Ridge Now reports.
 
“The consumer bureau will make clear that there are real consequences to breaking the law,” Cordray said, according to Blue Ridge Now. "We have given informants and whistle-blowers direct access to us. We took over a number of investigations from other agencies in July, and we are pursuing some investigations jointly with them. We have also started our own investigations. Some may be resolved through cooperative efforts to correct problems. Others may require enforcement actions to stop illegal behavior."
 
The agency's most immediate focus will be on non-bank financial companies such as private mortgage lenders, credit bureaus and money transfer agencies. While the agency was given authority over those types of companies in the Dodd-Frank regulatory overhaul legislation, the powers could not take effect without a director.
 
“Today, we are launching the bureau’s program for supervising non-banks,” Cordray said, according to Blue Ridge Now. “Many provide valuable services to customers who lack access to other forms of credit. And they are big markets. Nearly 20 million American households use payday lenders and pay roughly $7.4 billion in fees every year."
 
Cordray was previously in charge of enforcement at the agency. His public appearance was quickly arranged after his appointment was announced on Wednesday. The appointment was made without Senate approval under a constitutional provision for making appointments when lawmakers are in recess.

Comments are closed.