The pace of news related to the future of the Consumer Financial Protection Bureau shows no signs of slowing down. As we get ready for the confirmation hearing for Jonathan McKernan to be the new Director of the CFPB later this week, here are some other developments involving the regulator.
Consumer Groups Publish State Complaint Data
A number of consumer advocacy organizations are attempting to kill two birds with one stone — highlight the work of the Consumer Financial Protection Bureau as a means of applying pressure to keep it open and operating while at the same time pointing out to state regulators just how many issues consumers have with companies in the financial services industry — by publishing a state-by-state guide on how many complaints have bene filed with the Bureau since its inception more than a decade ago.
Working together on the project were the Student Borrower Protection Center, Americans for Financial Reform, and the Consumer Federation of America.
Bank Sued by CFPB Seeks Dismissal
Comerica Bank, which was sued by the CFPB last December for allegedly systematically harming three million Direct Express cardholders, many of whom rely on Social Security and other federal benefits, has filed a motion to dismiss the lawsuit. Comerica is alleged to have deliberately disconnected more than 24 million customer service calls, charged illegal ATM fees to more than one million cardholders, and mishandled fraud claims.
Comerica contends that the CFPB’s funding mechanism is unconstitutional because the agency is drawing funds from the Federal Reserve’s deficit, not its earnings, which violates both the Appropriations Clause and the Dodd-Frank Act. Second, Comerica asserts that the CFPB’s UDAAP authority does not extend to regulating customer service issues like call wait times, as such oversight is not explicitly authorized by Congress. Third, the bank argues that the CFPB’s claims regarding stop payment requests and enrollment fraud are preempted by the Electronic Fund Transfer Act (EFTA), which specifically governs these issues. Additionally, Comerica contends that the CFPB is retroactively applying new interpretations of the law in a way that violates due process rights. Lastly, the bank argues that the CFPB has failed to provide sufficient factual allegations to support its claims and that some claims are time-barred by statutory limitations.
Warren Hosts Forum to Show How CFPB Protects Consumers
Sen. Elizabeth Warren [D-Mass.], the Ranking Member of the Senate Banking Committee and one of the architects behind the launch of the CFPB, is hosting a forum today aimed at highlighting how the CFPB protects consumers in Massachusetts and nationwide. Massachusetts Attorney General Andrea Joy Campbell is due to testify at the forum, according to a published report.
“The CFPB serves as a beacon for consumer protection and economic justice, working to lower costs, alleviate student debt, and more,” Campbell said in a statement. “I continue to support the vital mission of CPFB, especially at a time when families across the country are struggling with sky-high costs of living.”
Sen. Warren extended an invitation to Elon Musk to join, but there was no word on whether he accepted.
