Kraninger’s First Six Months at the CFPB
Kathy Kraninger, director of the Consumer Financial Protection Bureau (CFPB), has now led the CFPB for six months. According to a press release detailing Kranigner’s actions thus far, she has focused on enforcing the law, clarifying rules and regulations, and improving financial literacy.
In regards to enforcement, the CFPB, under Kraninger’s leadership, has brought more enforcement actions against companies in her first six months than the CFPB did during the first six months of her two predecessors, Richard Cordray and Mick Mulvaney.
“Enforcement is an essential tool Congress gave the Bureau – particularly because education, rulemaking, and supervision will not prevent every violation,” said Kraninger. “We will use enforcement against bad actors who don’t comply with the law. Ensuring that justice is served in the public interest – that is our goal in using the enforcement tool. Further, a purposeful enforcement regime can foster compliance, help prevent consumer harm, and right wrongs.”
Kraninger has also been vocal about modernizing and clarifying federal rules and regulations. During her directorship, the CFPB has proposed rescinding the Mandatory Underwriting Standards of the Small-Dollar Rule while also planning to host a Symposium next week to more fully clarify how “abusive acts or practices” are defined under federal law.
According to the press release, Kranigner has also been focused on improving financial literacy, including her decision to launch an initiative called “Start Small, Save Up.” This financial literacy program aims to increase people’s budget for financial emergencies (a recent report by the Federal Reserve shows that one in four Americans are unable to cover an unexpected expense of $400).
“It is an honor and privilege to serve American consumers,” said Kraninger. “As Director, my focus is to prevent harm to consumers by using all the tools Congress gave us, including education, regulation, supervision and enforcement.”