Official Leading The Effort To Roll Back Debt Collection Rules Promoted To Number Two At Consumer Bureau

WASHINGTON, D.C. — On the same day the Consumer Financial Protection Bureau (CFPB) gutted its payday lending rule, debt collector advocate and corporate lawyer Tom Pahl has been named as CFPB Deputy Director. Pahl had been serving as the CFPB’s Policy Associate Director For Research, Markets, And Regulations — a political position created by then-Director Mick Mulvaney. Over the years, his coziness with the debt collection industry led to frequent speaking gigs at debt conferences across the country. In response, consumer watchdog group Allied Progress released the following statement: 

“It appears the foxes are now in charge of the henhouse as Kathy Kraninger promotes an advocate for debt collectors to be her number two at the consumer bureau. This move comes on the same day the Trump administration gutted payday loan borrower protections and paints an unfortunately accurate picture of the Trump CFPB: a place where industry runs the show,” said Derek Martin, director of Allied Progress.

WHAT YOU NEED TO KNOW ABOUT TOM PAHL:

  • Pahl Is “A Frequent Speaker” At Events Hosted By ACA International, A Leading Debt Collection Industry Group That Has Spent $1.7 Million On Federal Lobbying Since Trump Took Office 
  • In May 2019, Under Pahl’s Leadership, The CFPB Proposed A Rule That Would Allow Debt Collectors To “Send Consumers Unlimited Amounts Of Texts And Emails.” 
  • Pahl Was Previously An “In Demand” Lawyer For Debt Collectors, Working At A Law Firm Known For Its EffectivenessIn Helping Industry Actors “Resolve Pressing Issues Related To Regulation” And “Protect Their Businesses.” 
  • While An Industry Lawyer, Pahl Voiced The Concerns Of “‘People In Industry,’” Claiming They Were “‘Very Concerned About The Extent Of The CFPB’s Power And Frankly The Amount Of Money They Get When They Do Act.’” 
  • Pahl Wrote An Opinion Piece On How Under Trump, “The CFPB’s Rulemaking Frenzy Is Likely To Stop”—In It, He Echoed Industry Complaints That Previous CFPB Actions On Debt Collection, Payday, And Other Lines Of Business Would “Fundamentally Change Those Industries.”

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