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CFPB Is Pro-Business, Not Pro-Consumer

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@debtzapper Thanks. The article has a link to former CFPB director Rich Cordray's white paper which has some valuable info. 

"Yet the coronavirus crisis has underscored the dangers that Americans face from financial crime: A record number of consumer complaints have already been filed with the bureau — more than 42,000 in April alone, greater than in any other month since it opened in July 2011. The Justice Department recently brought its first fraud charges related to a small business lending program. More will follow.

The bureau, for its part, has not brought a single enforcement case during the crisis, and its enforcement actions fell by 80 percent from 2015 to 2018, according to an analysis by the Consumer Federation of America."

 

Former CFPB Director Richard Cordray released a white paper last month detailing 16 actions the bureau could take:

Make Sure Credit Reporting Companies Are Getting Things Right for Consumers. The CFPB has just issued guidance to credit reporting companies that they will not be expected to follow legal requirements in addressing and resolving disputes about credit reports for the duration of the economic crisis. That guidance is harmful to consumers and should be rescinded immediately. On the contrary, as more consumers fall behind on their debts, it will become all the more crucial that the information in their credit files be kept accurately — and if they dispute errors, they can get them fixed on a timely basis. As creditors work with consumers on various forms of accommodation, there is a risk that accounts will be misreported as late when in fact the consumer is paying what is expected. Errors made in those notations would block people from getting the credit they deserve and hamper their economic opportunities far beyond the pandemic and its aftermath.
• Ensure Creditors Give Appropriate Latitude to Consumers in Reporting Credit Information. The standards for furnishing information to the national consumer reporting companies specify that accounts affected by a “natural or declared disaster” are to be reported as such with a special code that preserves people’s credit from being damaged. Furthermore, if payment is deferred or the loan is in forbearance, that should be reported accurately as well, again bolstering people’s access to credit. The CFPB needs to make clear that failure to furnish this information accurately to the credit reporting companies is a violation of the Fair Credit Reporting Act, as Congress recently has made explicit, and the CFPB should supervise both the companies that furnish information and the consumer reporting agencies to hold them accountable for following the law. The CFPB could also encourage furnishers and credit reporting agencies to be proactive in using the disaster code, thus alleviating the current burden on consumers to have to inform furnishers and creditors that the consumer’s account should be covered by the special disaster code before they are entitled to such relief."

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Venable, LLP, represents creditors. They acknowledge that enforcement actions against creditors has lagged at the federal level, so that several states have now become "mini-CFPBs."

https://www.lTools Available to States. Consumer Financial Protection Bureau (CFPB) leadership, enforcement activity has lagged at the federal level. To fill the void, several states, notably New York, California, Pennsylvania, New Jersey, and Maryland, have stepped up their enforcement efforts, by either empowering existing agencies or creating wholly new agencies with broad jurisdiction and authority. While there is always interplay between state and federal law, certain entities that derive authority through state licenses to broker, lend, service collections, or generate fees are subject to stricter state enforcement. States also have their own consumer protection statutes and requirements, which allow them to review and control which companies do business in the state. Finally, rather than going through a regulatory or legislative amendment process, states tend to establish "enforcement common law" through enforcement action.exology.com/library/detail.aspx?g=73d18759-1673-4df0-ad44-d03d80591d7b

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