Consumer Bureau Taking Action in the Face of Threats from Predatory Lenders
Court decision fails to slow down aggressive CFPB
While a court decision from the 5th Circuit threatens to undermine the Consumer Financial Protection Bureau’s (CFPB) independence, the aggressive consumer protector shows no signs of slowing down.
Jason Mikula of Fintech Business Weekly notes that the CFPB has actually stepped up its activities recently, possibly attempting to gain as much traction as possible on key issues before a new Congress threatens the agency’s funding.
The CFPB isn’t letting the potentially existential threat posed by constitutional challenges to its funding mechanism to slow it down. In fact, the risk of having its budget subject to the Congressional appropriations process — potentially by a Republican-controlled House — seems to be encouraging the consumer protection bureau to double down on its various initiatives.
Some examples of current CFPB action include taking on credit bureaus over weak responses to consumer complaints, diving into the crypto mess, and continuing to press banks to eliminate “junk fees,” including excessive overdraft charges.
