Andrew Smith, the chief of the Consumer Protection Bureau at the Federal Trade Commission, has more than 120 potential conflicts of interest including a number of companies in the ARM industry, according to a published report. The conflicts stem from Smith’s work as a lawyer in the private sector before joining the FTC earlier this year.
The list was publicized by Public Citizen, a consumer advocacy group that filed a Freedom of Information Act request with the FTC.
Among the ARM industry companies that Smith would have to recuse himself from any discussion, investigation or enforcement activity are: Portfolio Recovery Associates, TransUnion, JPMorgan Chase & Co., CBC Companies, Wells Fargo & Co., Synchrony Financial, Santander Consumer USA, MoneyGram International, LexisNexis Risk Solutions, Cash Advance Servicing, Capital One, Bank of America, and more. The list also includes some very well-known companies, such as Facebook, Uber, and the National Football League.
“Even in an administration full of unprecedented conflicts of interests, Mr. Smith’s conflicts stand out from the pack,” said Lisa Gilbert, Public Citizen’s vice president of legislative affairs, in a statement. “The Federal Trade Commission should be protecting consumers against predatory payday lenders and corporate bad actors rather than giving the corporate lawyer who has represented these companies a job. This is one more example of the fox guarding the henhouse.”
Smith previously worked at the FTC from 2001 to 2005 before leaving to spend 13 years in the private sector. His confirmation was was less-than-unanimous, not because of his qualifications, but because of his ties to so many companies, according to the report.
“The Director should be our quarterback on the agency’s top priorities,” said Rohit Chopra, an FTC commissioner, in a statement earlier this year. “But, I fear our quarterback will be spending too much time on the sidelines. Industry lawyers can be a key weapon in an enforcer’s arsenal. But, in this case, it may prove to be a liability, both substantively and in terms of public trust.”
Smith replaced Tom Pahl at the FTC. Pahl, who was acting director of the bureau, left to join the Bureau of Consumer Financial Protection.
