Elizabeth Warren Says CFPB to Spend Half of Budget on Enforcement

This past Monday I had the pleasure of catching up with my old friend Elizabeth Warren. She was the keynote speaker at the National Association of Attorneys General meeting in Charlotte, NC.

Professor Warren made it very clear that the Consumer Financial Protection Bureau (CFPB) will focus on compliance, supervision and enforcement of financial products. This includes all areas of the debt relief world as well as lenders and payday loans.

More than half of the CFPB resources will be dedicated to compliance with the law. In cooperation with the frontline attorneys general the CFPB will have a closer ear to the frontline of consumer complaints. This cooperation will create a faster track for government intervention.

Since the FTC and CFPB plan to share enforcement action from “different directions” hopefully companies taking advantage of consumers will have fewer places to run.


A Packed Room of Regulators and AGs Listening to Professor Warren

Both FTC Commissioner Brill, who also spoke at the conference, and Professor Warren said there would be no hard boundaries between the agencies but saw overlap as a beneficial outcome.

Having a “profound effect on consumer financial markets” is the intention of the CFPB and the CFPB looks forward to be the new cop on the beat.

It seems that the goal is to allow honest businesses to thrive while dishonest businesses that harm and take advantage of consumers will become aggressive targets of action. Debt relief companies should notice that the way forward is through compliance with the rules and transparency. It was clear from her presentation that the old belief that “we’re too small for regulators to hassle with” is now gone.

Professor Warren made it very clear that law enforcement will be the hallmark of the CFPB, leaving the bad guys no place to run.

I also had lunch with the Deputy Director of Enforcement for the CFPB, Kent Markus. I found him to be a regulator with a great amount of consumer level experience and an enthusiasm to learn more about the debt relief issues that harm consumers. Markus will be working closely with his longtime friend, the Director of Enforcement, former Ohio Attorney General Richard Cordray.

See also  Discover Bank Screwed Over Student Loan Holders Says CFPB

By the way, for those of us that have had the pleasure of working with Alison Brown at the FTC she is leaving the agency this week and headed for a new role with the CFPB.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


Damon Day - Pro Debt Coach

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6 thoughts on “Elizabeth Warren Says CFPB to Spend Half of Budget on Enforcement”

  1. My only hope and concern is that the CFPB will actually shut down the loopholers instead of hitting them with hefty fines and allowing them to continue harming consumers. It would be disappointing if this turns into another legalized extortion tool to earn big payoffs and gain political points.

    Reply
  2. When an industry is over run with con men, and nobody in a leadership position has the chutzpah to step up and do the right thing, is it really any surprise that a governmental body will step in at some point to try to resolve the matter? Don’t blame the CFPB and certainly not Steve for simply reporting it.

    Blame the guys that made the governmental action necessary in the first place. You know who they are. The ones you were paying for “protection.”

    Reply

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