For Immediate Release
Consumer Advocates Sue CFPB For Granting Financial Services Industry Illegal Influence Over Consumer Protection Policy
Director Kraninger Unlawfully Formed the “Federal Consumer Financial Law Taskforce,” Stacked Group with Industry Representatives
Secretive Taskforce Likely To Recommend Sweeping Rollback of Consumer Protections as Nation Grapples with Recession
NACA joined 26 other consumer, community, and civil rights groups on a comment responding to the Consumer Financial Protection Bureau's Request for Information on its newly formed Taskforce on Federal Consumer Law. The taksforce's ideological makeup and the Bureau's repeated disregard of pro-consumer groups' views on many of the issues the taskforce is charged with overseeing call the taskforce's legitimacy into question.
In response to a Request for Information (RFI) by the Consumer Financial Protection Bureau on its newly formed Taskforce on Federal Consumer Law, NACA submitted these comments urging the Bureau to suspend the taskforce's activities. The sudden creation of the taskforce, its member makeup, the poor timing of the RFI, and more indicate that the taskforce is unneccessary and may be harmful to the CFPB's statutory mission.
NACA joined organizational partners on a letter to the CFPB urging the agency to suspend all non-essential rulemaking and focus its resources on protecting consumers during the COVID-19 emergency.
Consumer financial harms stemming from the COVID-19 pandemic will only worsen in communities across the country if the Consumer Financial Protection Bureau (CFPB) does not vigorously enforce the consumer protection laws under its jurisdiction, state leaders of the National Association of Consumer Advocates (NACA) warned today.
"Overall enforcement remains down, said Christine Hines, the legislative director at the National Association of Consumer Advocates. The CFPB is still not doing the job of protecting consumers Congress intended under Kraninger, with both the drop in enforcement and the rollback of key rules, she said."
Los Angeles Times, Column:Trump slashed consumer protections. So California is stepping up.
"'Requiring affordable loans that a borrower can pay back without taking out another loan would have protected millions of people who are typically caught by lenders in high-cost debt traps,' said Christine Hines, legislative director for the National Assn. of Consumer Advocates."