(WASHINGTON) The House Financial Services Committee today issued a report alleging that the CFPB Director Rich Cordray “failed to heed attorney advice on auto lending rule, likely violated federal law” as the CFPB drafted regulations in 2015 outlining which non-bank auto lenders it planned to supervise.
National Consumer Law Center Associate Director Lauren Saunders made the following statement:
“The half-baked allegation against consumer watchdog Rich Cordray seems aimed at building a case that President-elect Trump should fire Cordray for cause. This tempest in a teapot, much like past bogus allegations, is aimed at headlines but does not withstand scrutiny. The trumped up charges against the consumer watchdog do not remotely approach the egregious level of negligent conduct that would necessitate removing a presidential appointee for cause. The internal CFPB exchanges detailed in committee's report show routine internal debate about how to best follow federal notice and comment regulations. Auto lenders were well aware that they could be supervised by the CFPB, and would easily be able to conduct their own analysis of whether they would meet the CFPB's threshold for supervision. Critics attempting to build a case for the unprecedented removal of Richard Cordray as CFPB are on thin legal ground, lack public support, and are carrying water for powerful special interests.