Washington D.C. – During her defensive appearance before the House Financial Services Committee today, CFPB Director Kathy Kraninger delivered one non-answer and non-commitment after another to serious questions about her decisions to abandon consumers on several fronts – from the precipitous decline in enforcement actions to her industry–enriching rulemaking to badly neglecting the student loan debt crisis.
Among many lowlights, the Director repeatedly refused to explain why she let payday lending company Enova off without making consumers whole despite admitting to scamming borrowers out of over $2 million. Kraninger danced around direct questions about why she ignored recommendations from career CFPB staff and why she instead choose not to seek out one dime in compensation for victims, even after Enova offered to pay back some of what they took.
Allied Progress spokesman Jeremy Funk reacted:
“Director Kraninger has been a dream for financial scammers and predatory lenders. She rarely comes knocking for penalties for illegal behavior or compensation for defrauded consumers. And when she does, it’s often for amounts so inconsequential – sometimes as little as $1 – that it’s considered to be a minor cost of doing business. Kraninger’s mishandling of the Enova case is emblematic of her apathy towards enforcement.”
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