The nominee to direct the Consumer Financial Protection Bureau told a panel of Senators that he would prefer using the agency’s supervisory tools rather than litigation to resolve problems.
Lawsuits can be very slow and are a “needlessly acrimonious way to resolve a problem," Corday said, according to the ABA.com. The agency’s supervisory powers offer “the prospect of resolving compliance issues more quickly and effectively without resorting to litigation.”
During Cordray’s confirmation hearing, ranking member of the Senate Banking Committee, Richard Shelby (R-Ala.) said too much authority was given to the director of the CFPB.
“The majority structured the bureau to grant its Director unprecedented authority over the lives of the American people without any effective checks,” Shelby said during his opening statement, according to ABA.com. “The director determines which rules are enacted and which enforcement actions are brought.”
Cordray told the senators that he is committed to consumer protection and that his prior roles as a county and state treasurer taught him that “there is no such thing as a one-size-fits-all solution as we seek to aid those who want to do the right thing and, when necessary, to thwart those who seek to take advantage of others,” ABA.com reports.
Cordray also included in his testimony his support for streamlining current regulations, as is being done for mortgage disclosures.
Corday has a tough confirmation battle ahead as Senate Republicans remain dedicated to changing the structure of the CFPB to replace the director position with a bipartisan commission.