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Cordray testifies on CFPB enforcement, oversight responsibilities

Richard Cordray

Consumer Financial Protection Bureau Director Richard Cordray testified before the House Financial Services Committee on Thursday that the agency is focused on consumer education and the goals of oversight and enforcement.

“One of our main objectives is to make sure the costs and risks of financial products are clear [to consumers],” Cordray said. “It is the American way for responsible businesses to be straightforward and upfront with their customers, giving them all the information they need to make informed decisions.”

Cordray added that the agency intends to ensure the existence of a fair marketplace through “even-handed” oversight of financial institutions.

“Our supervisors are going on-site to examine their books, ask tough questions and fix problems we uncover,” Cordray said. “Under the laws Congress enacted, and with a director in place, we can now do this across all markets for consumer financial products and services.”

Cordray said that the agency has all the proper information outlets necessary for proper, comprehensive enforcement and oversight.

“The Consumer Bureau will also make clear that violating the law has consequences,” Cordray said. “Through our field examiners, our direct contact with consumers and businesses, and our highly skilled researchers, we have multiple channels to know the facts about what is happening in the marketplace.”

Cordray further warned that should financial institutions be uncooperative or non-compliant, the bureau will take action.

“We plan to use all of the tools available to us to ensure that everyone respects and follows the rules of the road,” Cordray said. “Where we can cooperate with financial institutions to do that, we will; when necessary, however, we will not hesitate to use enforcement actions to right a wrong.”

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