CFPB Archives - Page 26 of 82 - Americans for Financial Reform

AFR In the NEws: Divide Between Financial Regulators Appointed by Trump, Obama Widens (Reuters)

The political fissure between an Obama-appointed financial overseer and regulators hired by U.S. President Donald Trump is widening, with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray threatening to challenge in court any attempt to kill his agency’s new arbitration rule. To overturn a CFPB rule, two-thirds of the FSOC must agree that it puts the whole banking system at risk. “It’s an extraordinarily high standard,” said Brian Marshall, policy counsel for Americans for Financial Reform, a Washington-based advocacy group. “It’s ludicrous that the arbitration rule would meet that standard.”

AFR In the News: Banks’ Imperfect Options for Killing CFPB Arbitration Rule (American Banker)

Opponents of the Consumer Financial Protection Bureau’s arbitration rule are eyeing a trio of options for blocking the regulation before it takes effect, but all three are beset with their own challenges. The strategy with the most attention is for lawmakers on Capitol Hill to repeal the rule through the Congressional Review Act. But industry representatives are also considering the prospect of the Financial Stability Oversight Council overruling the regulation, or a group such as the Chamber of Commerce suing to throw the rule out. Yet all three appear to face an uphill climb. “Suggesting now that the rule would put the safety and soundness of the American banking system at risk is preposterous,” said Brian Marshall, policy counsel at Americans for Financial Reform. “Many banks do not use forced arbitration clauses at all, and the OCC has never suggested those institutions are not safe and sound as a result.”

AFR in the News: With ‘Rip-off Clause’ Quashed, Consumers Can Now Sue Banks in Class-Action (USA Today)

“After years of review on the subject, the Consumer Financial Protection Bureau… declared a new rule Monday that bans banks, credit card companies, payday lenders and other financial firms from requiring consumers to settle group disputes through arbitration... ‘The biggest step has been taken. This is a huge victory for consumers,’ said Amanda Werner, campaign manager at Americans for Financial Reform and Public Citizen. ’We expect a lot of misconduct is going to be rooted out sooner.’”

AFR in the News: Banks and Credit Card Companies Can’t Try to Stop You from Joining a Class Action Lawsuit — For Now (LA Times)

“Consumers had good reason to celebrate Monday after the Consumer Financial Protection Bureau… issued a rule blocking credit card companies, banks and other financial firms from putting roadblocks in the way of customers joining class-action lawsuits. It’s a big deal… Said Lisa Donner, executive director of Americans for Financial Reform: ‘The consumer agency’s rule will stop Wall Street and predatory lenders from ripping people off with impunity, and make markets fairer and safer for ordinary Americans.’”

AFR in the News: This New Rule Could Make It A Lot Easier to Sue Your Bank (KUSA-TV Colorado)

“‘Forced arbitration deprives victims of not only their day in court, but the right to band together with other targets of corporate lawbreaking. It’s a get-out-of-jail-free card for lawbreakers,’ said Lisa Donner, executive director of Americans for Financial Reform. ‘The consumer agency’s rule will stop Wall Street and predatory lenders from ripping people off with impunity, and make markets fairer and safer for ordinary Americans.’”

Congressional Testimony: Reject legislation to radically decrease bank oversight

“Americans for Financial Reform (AFR) appreciates the opportunity to provide this statement for the record of this Financial Institutions and Consumer Credit Subcommittee hearing, which considers several bills that would significantly undermine consumer financial protection and the safety and soundness of the financial system. Although the hearing is entitled “Examining Legislative Proposals to Provide Targeted Regulatory Relief to Community Financial Institutions,” the bills under consideration are not focused principally on community financial institutions. The most sweeping provisions of these bills apply to all institutions, many of which would radically decrease oversight of the nation’s largest banks and increase the risk of harm to the public.”

AFR Statement: Oppose Giveaways to Wall Street and Predatory Lenders in Appropriations Bill

It would gut the Consumer Financial Protection Bureau, enable reckless behavior by big banks, and hand a special favor to payday lenders. Lawmakers should reject this legislation out of hand.

AFR Statement: Oppose OCC Bid to Control Consumer Protection

The OCC’s proposals would directly weaken financial regulatory protections and push aside other agencies so the OCC could take critical guardrails off of Wall Street on its own

AFR in the News: House wants to deregulate Big Banks again (Pekin, Ill. Daily Times)

“‘This legislation takes the worst ideas concocted by Wall Street and predatory lenders, and combines them into one toxic package,” [Lisa Donner, director of Americans for Financial Reform] said. ‘The bill is crammed with deregulatory gifts to the entire industry, including megabanks that want to return to the excessive borrowing and risky practices that led to the financial crisis.’”

AFR in the News: Mnuchin calls for major rollbacks of Dodd-Frank (LA Times)

“‘We need more effective regulation and enforcement, not rollbacks driven by Wall Street and predatory lenders,’ said Lisa Donner, executive director of Americans for Financial Reform, a group advocating tougher oversight of the financial system. The report, which included dozens of recommendations, is the first of three ordered by Trump as he looks to fulfill a campaign promise to dismantle the Dodd-Frank Wall Street Reform and Consumer Protection Act.”