Washington DC — Consumer watchdog group Allied Progress endorsed former CFPB Director Richard Cordray’s common sense recommendations for current Director Kathy Kraninger to better help consumers navigate the treacherous financial waters ahead amid the COVID-19 crisis – including help keeping families in their homes and a pause on all non-essential agency rulemaking. Allied Progress has stressed in recent days that there is no worse time for the Trump CFPB to proceed with its plans to validate predatory practices of the payday lending industry, or to allow its secretive, industry-stacked ‘Task Force’ to continue chipping away at consumer protection laws, especially when it’s run by a corporate consultant that defended price-gouging during Hurricane Katrina.
“Every minute the Trump CFPB wastes conducting its usual business doing favors for predatory lenders and greedy banks is critical time they’re not devoting to keeping consumers safe and secure as the economy races towards recession,” said Derek Martin, director of Allied Progress.
Excerpt from Former Director Cordray’s white paper, ‘Immediate Actions For CFPB To Address COVID-19 Crisis’:
Stop All Non-Essential Rulemaking Work. All non-essential rulemaking work should be halted so that it does not divert the CFPB’s limited human resources, including economists, from these critical efforts. For the next several months, it is also likely that neither industry nor consumers are likely to have the bandwidth to pay attention to requests for information or otherwise to participate in the rulemaking process in any event. This step should include the CFPB’s latest request for information on its new task force charged with rewriting federal consumer financial law; nothing could possibly justify such a priority right now.