Former CFPB Director Cordray Publishes White Paper Pushing Agency to Proactively Help Consumers During Pandemic

Apr 13, 2020Federal Regulation, News

Richard Cordray, who led the Consumer Financial Protection Bureau (CFPB) before leaving the agency to run for Ohio Governor in the 2018 election, recently published a White Paper urging the agency to act quickly in helping consumers during the coronavirus pandemic.

“The CFPB has a first-class consumer complaint response system that provides real-time information from consumers all over the country on what is happening in their lives,” Cordray wrote. “The CFPB should use it to learn from consumers what exactly is happening and make answers publicly available.”

Cordray recommended that the Bureau issue guidance to prevent debt collectors, car-repossession companies, and other agencies from scamming and abusing their consumers. He also suggested that lenders be monitored closely to ensure clear communication and that promises are kept.

Additionally, Cordray wrote that the agency should help prevent evictions and foreclosures. The coronavirus relief law authorizes foreclosure relief, so the Bureau should monitor banks closely to ensure they are providing that relief.

“The CFPB is well positioned to make a difference for large numbers of Americans, but it must confront the circumstances and act immediately to mitigate the harmful effects of this crisis,” Cordray wrote. “Those with oversight of the CFPB, including the American public, must make sure this happens.”

The white paper was addressed to Kathleen Kraninger, current CFPB Director, as well as leaders of the House Financial Services Committee and the Senate Banking Committee. Though no one from the Bureau promptly responded, Senator Elizabeth Warren (D-Mass.) agreed with Cordray and tweeted that Kraninger “must stop letting the banking industry drive the agency’s agenda.”

Cordray was appointed Bureau Director by former President Obama, serving from 2012 to 2017. To read the full white paper, click here.

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