Trump picks fight with CFPB, calls agency a ‘total disaster’
President Trump is picking another fight with the Washington swamp by naming his own man as temporary boss of a federal agency conservatives hate.
“The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick,” he tweeted Saturday.
The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick. Financial Institutions have been devastated and unable to properly serve the public. We will bring it back to life!
— Donald J. Trump (@realDonaldTrump) November 25, 2017
“Financial Institutions have been devastated and unable to properly serve the public. We will bring it back to life!” the tweet said.
Leadership of the bureau — the brainchild of liberal Massachusetts Sen. Elizabeth Warren — was put in play Friday by the resignation of director Richard Cordray.
Before he left, Cordray named his chief of staff as his interim replacement. Cordray’s permanent replacement will be decided by Trump and the Senate.
Trump wants Office of Management and Budget director Mick Muvaney to be the agent’s interim boss. Mulvaney has called the agency “a sad, sick joke.”
Senior administration officials said Saturday that a 1998 law trumps the agency’s internal rules — and they won’t shy from a court fight over the dueling interim directors.
“We have gone out of our way to avoid an unnecessary legal battle with Director Cordray,” one official said. “But his actions indicate that he wants to provoke one.”
A “disaster”? Maybe fore Trump’s Wall Street friends. Below are several key accomplishments that have benefited consumers since the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted:
Securing Almost $12 Billion in Consumer Relief
- The CFPB helped over 29 million individual consumers receive $11.8 billion dollars in due relief, while responding to over 1 million consumer complaints since openings its doors.
- Through enforcement action alone, the CFPB reduced $7.7 billion in consumer debts while winning $3.7 billion in compensation for consumers.
- Nearly 50 million households have benefited from new CFPB mortgage servicing protections that protect consumers from surprise costs and terms when repaying their mortgage, and offer additional protection if a borrower falls behind on their mortgage payment.
- More recently, the CFPB, partnering with the Los Angeles City Attorney’s Office and the Office of the Comptroller of the Currency, uncovered deceptive banking practices at Wells Fargo Bank defrauding millions of customers. Enforcement action by the CFPB forced Wells Fargo to pay full refunds to consumers harmed by illegal practices and to pay a $100 million penalty for their wanton behavior.
Protecting Service Members from Predatory Practices
- The CFPB’s enforcement actions provided $130 million in due compensation to service members, veterans, and their families that were harmed by illegal private sector predatory practices.
- In collaboration with the Department of Defense (DOD), the Office of Servicemember Affairs at the CFPB visited more than 145 military installations, handling over 71,000 consumer complaints from service members and their families, and advised DOD on better rules to protect service members from financial exploitation.
Saving Consumers $16 Billion in Undisclosed Credit Card Fees
- The Credit Card Accountability, Responsibility and Disclosure (CARD) Act, now under CFPB jurisdiction, reined in the usurious late fees charged on credit cards, limited predatory practices targeting young consumers on college campuses, curtailed sharp interest rate hikes, increased access to consumer credit, and made credit card costs more transparent, saving consumers more than $16 billion in undisclosed fees.
- The number of new consumer credit cards increased steadily since implementation and enforcement of the CARD Act to 6.5 million new credit cards and $37.5 billion in available credit in July of 2016.
- In collaboration with private industry, the CFPB made it easier for stay-at-home spouses to gain access to credit cards by allowing them to use total household income in their applications for new accounts or higher credit limits. This has helped more than 16 million married individuals who do not work outside the home access necessary credit.