House Committe Chair: CFPB Is Not Accountable

Coming before the House Committee on Financial Services Thursday, Consumer Financial Protection Bureau Director Richard Cordray faced tough critics from the house panel who openly questioned the bureau’s accountability. 

“Many of us have been frustrated by the lack of accountability in the CFPB’s leadership structure and the lack of transparency in the CFPB’s funding structure,” House Financial Services Committee Chairman Spencer Bachus (R-AL) said in his opening statement for the hearing on the CFPB.

The CFPB has operated under Cordray’s leadership since January, when the director was appointed through a recess appointment by President Obama. Republican critics of the bureau have long stressed a need for bipartisan committee leadership rather than a single leader for a bureau comprising the scope of enforcement wielded by the CFPB. 

Advertisement

“The absence of adequate checks and balances is especially troubling given that neither Congress nor the executive branch can fully review the Bureau’s spending,” the House Financial Services Committee said in a statement. “The CFPB’s requests to draw millions of dollars from the Federal Reserve often take the form of nothing more than e-mails that lack any details as to how the money will be spent.”

The issue of consumer complaints was another point of discussion, as the bureau has begun accepting complaints through an online portal and via telephone. It has said in the case of credit card complaints, it will make the complaints as well as the companies under complaint public. 

“Rather than help consumers, publicly disclosing unverified information could instead mislead consumers. It is my hope that the CFPB will take the steps necessary to ensure that the data it releases is accurate.”

Written by Elizabeth Ecker

Join the Conversation (5)

see all

This is a professional community. Please use discretion when posting a comment.

  • How can anyone question this organization?  Its standard of truth and high principles was put together by a woman who proclaims she is Cherokee Indian but refuses to meet with representatives of the Cherokee Nation to evaluate her claims.  If that is not standing up for what you believe, what is?  No doubt, Professor Warren will use the same standard in the Senate, IF she is elected.

    (LOL)

  •  Congress has a 10% approval rating according to the latest Huffington Post report.  With an approval rating close to “0” the American people want Congress to stay away from the CFPB that is working. The CFPB just made Discover return ALL money it should not have received from the customers that they took.  We don’t want Richard Cordray turned  into a do nothing drama queen controlled by a group of people with almost a “0” % approval rating. The country is having to find ways to work without the help of Congress. Congress, just get out of the way is all we ask. I can see why you are so threatened by not being in total control of an agency that is making progress. Just go on your 2 month vacation with your great pay and benefits  so we can get more work done. Sure would have been nice if Congress approved cram downs on loans for homeowners that bought at the high market price based on a fake demand system orchestrated by the banks for trading their loans. We would be in a different place today if you held them accountable and made them accept the write down. Don’t blame the president, the American people are smarter than you think and I suggest you compare approval ratings and go on vacation and come back and continue to represent your little pledges instead of the American people that you were sent to represent.  The American people are finding ways to work around the Elephant in the room, thank God.http://www.huffingtonpost.com/2012/08/14/congress-approval-rating-all-time-low-gallup-poll_n_1777207.html

    • Debbiesss,

      You mean when the donkies had total control of Congress in the first two years of this Administration the popularity of Congress was different?  It was so bad back then that elephants were able to storm the House and almost take control of the Senate.

      You may hate it but the American people seem to like and want divided government.

  • The_Critic,

    I guess I don’t understand the importance of Warren meeting with members of the Cherokee Nation to prove herself.  By the way, she claimed to be Cherokee on a Harvard directory to enable herself the opportunity to meet others that share her background.  I don’t blame her for not “proving herself”.  This kind of attention is taking away from the issues that are more deserving than this drama.  Perhaps her policies are more important to some than her claim of Cherokee decent.  

    • Anon,

      Calling her a Cherokee when she had absolutely no evidence of that claim, amplifies her putting forth other untruths to be able to get her way.  This is more than an insignificant character flaw and showed itself again and again as she went “softball” on pursuing her case for the legitimacy of her ideas on late night talk shows and the shows of entertainers who use serious news matters to further their careers.

      Professor Warren claimed again and again that all her little bureau was doing was adding clarity to the lending process and improving truth in lending while at the same time knowing her bureau was created to do much more than that.  Ms. Warren is not a Cherokee woman and her bureau in performing its duties is looking into matters other than debt, bringing clarity to the lending process, and upholding truth in lending.

      If Ms. Warren lied about being Cherokee, let her simply say so.  If she will not, let her be tested by Cherokees.  It is far more likely her ancestors were involved in initiating the Trail of Tears than it is that her ancestors were the victims of that awful march.  As the parent of Cherokee blood children, Ms. Warren insults their heritage.

string(89) "https://reversemortgagedaily.com/2012/09/24/house-committe-chair-cfpb-is-not-accountable/"

Share your opinion