We support reforms to the financial marketplace to curb bad practices by banks and lenders.
A minority of Senators are again holding hostage the director of the Consumer Financial Protection Bureau until they can significantly weaken the watchdog’s authority to protect the public.
Consumers may remember this fight from the past two years, when Richard Cordray’s nomination to head the bureau was indefinitely held up. President Obama broke the stalemate by putting Cordray in the post in January 2012 with a recess appointment. But Cordray’s term is up at the end of this year, and his nomination is again being used to limit the watchdog’s independence.
These Senators want the CFPB to be the only bank regulator to be subjected to the highly politicized Congressional funding process; replace its director with a five-member commission; and let other bank regulators (those who failed to prevent the economic meltdown) veto the CFPB’s decisions.
These proposals would make Wall Street extremely happy, but would hamstring the bureau’s ability to quickly respond to financial abuses and protect consumers from the latest scheme.
Since taking the bureau’s helm, Cordray has overseen enforcement actions that have returned $425 million to more than 6 million consumers lured into purchasing products that they did not need or understand.
In addition, the bureau has resolved 133,000 consumer complaints over those issues that directly impact our wallets: credit card disputes, mortgage scams, bank account services and onerous student loan terms. The CFPB also has become a fierce advocate for servicemembers, veterans and their families. Prior to the creation of the bureau, consumers didn’t have a one-stop watchdog that would look out for them, and the CFPB continues to enjoy broad public support.
Given the critical importance of having a fair, strong leader to protect consumers – the bureau already proposed rules that lenders must ensure buyers can repay their mortgages, and made credit card and student aid offers easier to understand – Cordray’s should be confirmed without delay.
The last thing consumers or financial markets need is the uncertainty caused by political brinksmanship. We hope you will join us as we continue to fight for a strong consumer watchdog that puts your interests before Wall Street.
This is a bald-faced lie. And I would hardly use Politico as a reputable source, it’s a partisan site.
TRUTH… ONE, the Cordray appointtment was done illegally, when the Senate was NOT in recess, and is therefore illegal, and has been ruled so by a high court. I would think you would want to OBEY the law, rather than a left-wing agenda (this is why I no longer subscribe to Consumer Reports).
TWO,the CFPB has been moved under ageis ofthe Federal Reserve, where thereis NO legislative oversight whatsoever. Therefore, it is perfecty legitimate for the legilative branches to choose NOT to fund something that has no oversight.
We don’t line in a dictatorship…YET. But the way this has been done, and the deliberate evasive tactics to remove proper oversight, is totally un-American. those cosumer protections can be done in a proper way, but THIS ISN’T IT!
Recess appointments are indeed legal and are covered in Article II Section 2 of the US Constitution.
From the tone of his posts, it sounds like “honorandfaith” picked a most inappropriate handle. The Senate is not making any attempt to provide meaningful oversight — the move to establish “legislative oversight” smacks of pure politics and the protection of big banking interests.
Exactly how was the senate not in recess? Oh yeah – semantically :p I wish I could hang out wherever I please, state that I am working for a moment, and let that be what I get paid the big bucks for. Geez, we could all be rich, if that’s all it took to do a difficult job well! You and your rhetoric bring forth visions of a world where nobody can survive. Thank Goodness I have better people than that in my world!
You just told us that you stopped supporting a non-partisan, unaffiliated with corporate interests, consumers’ rights and protections organization that exists to study and report on how products and policies will affect us; and that the reason you withdrew your support was because you didn’t like what they learned and reported back to us. You didn’t like that they told you what you don’t want to believe so you plugged your ears and put on your blinders and withdrew your support. Not too smart, that.
Well, I guess you didn’t like my previous response, exposing the lies in this article, and deleted it. So much for freedom of expression and honest open inquiry.
Your far-left positions are why I no longer subscribe to Consumer Reports. If you can’t be objective, honest, and transparent in the Consumers Union’s reporting, how could I trust your objectivity in your testing results?
‘Nuff said…
Please publish the names of the obstructionist senators. They need to be outed. They need to be shamed into looking after Main Street rather than Wall Street.
Gerald, Most people don’t know this, but the problem is that the CFPB is going to be housed under, and accountable ONLY to, the Federal Reserve, and by extension, the Executive Branch of the government. This allows for NO LEGISLATIVE OVERSIGHT, at all.
This is a HUGE disenfranchisement of the Senate’s proper role of “advice and consent”, and smacks of dictatorship.
In fact, one of the concerns is that it’s not even clear from the language, if any subsequent President could make any changes to the agency or establish additional oversight functions if the agency got out of control…. So then, the question becomes…Who’s “watching the watchers”?
We must ALL, irrespective of Party or political affiliation, beware when the proper checks and balances provided to protect us in the Constitution are erased, particularly by administrative action. It cuts “the people” out of the picture and diminishes our access to those who make policy and tax us to do it.
Political people with agendas manipulate, as does Politico, to get us to take action without having all the facts. I have just given you enough factual information to be concerned as well.
SO… DO you or don’t you want to be able to have some input, through your elected legislators, if this agency turns out to be a dud? If you want to NO ACCESS, then leave it as it is. if you want access, then make sure that this agency has some kind of legislative oversight. You would make our Founders happy.
Why would I want those fools in congress, who only care about the next election and their Wall St. masters? Congressional oversight usually means nothing gets done (see the US post office). Even with all you’ve said what I see is an attempt to weaken an agency that is to protecty me and help it protect big business.
So who do I yell at? I fought too hard to let this Agency become yet ANOTHER SEC or any of a HUNDRED inept, toothless beaurocracy? I’m in Nevada. Stuck with Senator Reid, who won’t even reply to an email request, and two “by the book hard right teabaggers, HECK and Heller! WHO represents ME in Washington? PLEASE TELL ME so I can try and HELP save this needed agency!
Sincerely,
John S. Cheney
If i were you I would not help save this agency, it was done illegally. Also this agency is not and I mean not going to help the little guy. If anything all it is going to do is stop us from getting loans, because they will over tighten standards. Loans are all about risk, and if one’s credit score is lower then it is going to raise your interest rate. I for one would have a higher interest rate, and be able to have a car or a home instead. As long as people inform themselves about the products banks are giving we do not need this agency. We need more personel responsibility.
The last group we need in chage of oversight is the minority of Congress that continues to obstruct positive legislation for this country. This budeau should have independence from Congress, similar to the Federal Reserve.
The Consumer Financial Protection Bureau should have been fully staffed and funded years ago. The fact that it isn’t is another outrageous action of the bought-and-paid-for GOP.
Wall Street caused the financial meltdown, but millions of innocent people lost their homes and jobs because of Wall St./Republican cronyism. Now they even want to cut Social Security and Medicare to help pay for their crimes.
Amen.
Amen to your remarks Gerald! This needs to be one of the most powerful agencies.
Consumers need all the protection we can possibly get from the CFPB, and it can operate effectively only when it has a director and full funding. It’s time to stop playing politics – or responding to the desires of corporate benefactors rather than the electorate – and get Richard Cordray on the job!
Once again we are reminded “We have the best Congress money can buy”.
I see no evidence for thinking this is any sort of “best” congress, but I am reminded of Robert A. Heinlein’s words “An honest politician is one that stays bought” — and they certainly do seem to stay bought.
I’ll echo what Gerald Rust wrote. Couldn’t have said it better. I am ashamed of our legislators in general, and enraged by some of them.
Allow the consumer the educating to be smart shoppers.
No more bad politics- let this man be reappointed!
Amen, Brother!
I am quite sick of being held hostage by political cronies!!! You will suffer at the ballot box if you dont do the right thing for THE PEOPLE!!!
If this is a representative government I am the Holy Ghost. None of you should ever be reelected to any office. None of you represent what we sent you there to do. If I did my job like you, I would be on the street with a scarlet letter saying this guy is useless. No, not useless he gets in the way of doing ANYTHING!
If you refuse to support consumers, then as far as I am concerned, you’re fired!
We need a strong person to lead the consumer protection agency in the face of many scams and increase in faulty products, misleading advertising and the inability of the courts ot handle lawsuits due to congress’ failing to appoint the number of judges necessary to maintain a democracy for all.
That’s what they(the money holders) are afraidof. It will only encourage more fraud, like the fox watching the hen house.
De facto governing by obstructing everything is the Republican way. It is making them more and more and more unpopular. They don’t seem to care. This is a democracy supposedly governed by majority rule – they want as much unaccountable power as they can get. But that seems to make them more and more unpopular. How long before the wealthy people and corporations bankrolling them figure that out? It’s all such a mystery…..
IN light of the fact that congress has held up Obama’s appointment of judges who could hear consumer lawsuits, we need a strong head of the consummer protection agency. Congress needs to make sure this agency is functional. Stop delaying this appointment.
JUst do it.
It seems once agian congress & the big banks want to screw the middle class working working people
Real Consumer Protection is impossible currently if any politicians can have influence over it. This agency must not be placed under political influence; that is the point! The fact that Republicans(and their corporate sponsors) refused to approve of President Obama’s appointee forced the President to put Richard Cordray on the job without their approval.The agency and it’s Director are very important to all consumers. Approve Richard Cordray NOW!
This agency, CFPB, is the only hope for the “little guys”. Consumers must have a voice representing us and we certainly DO NOT WANT the US Congress overseeing this agency. Congress seems to be totally useless, thanks to the Republicans,or should I say Tea Party and we don’t want them overseeing our Consumers Agency. We need an EFFECTIVE agency looking out for our interests.
I’m still laughing at the thought of Consumers Union as a far-left organization.
Thank you, Consumers Union, for continuing to fight for the consumer.
It needs to be independent with no oversight from a corrupt Congress.
Once again the consumer will be shafted by those whose only interest is making money for the wealthy. Protection for consumers should be # 1 priority
Lets get rid of all those clowns in DC – the entire Administration – let them go out and find a real job
Whom do we really need to be protected from? Want to know what watch dogs have been up to? Read “The FInancial Crisis and the Free Market Cure” by John Allison. Then read “The Housing Boom and Bust” by Thomas Sowell. After that you will wonder who is going to protect you from reckless government agencies not “Wall St & greedy bankers & deregulation”. There have been various notable reviews of these books. The former by Investors Business Daily in several parts, e.g. 2/19/2013 and the Editor of Kiplinger’s Oct 2009 reviewed Sowell’s. Tom Sowells book is short but chillingly clear. In addition to how Clinton’s HUD, Fannie and Freddie destroyed the housing market (and the global economy) he also explained how the New Deal prolonged & deepend the Great Depression. Sorry, you won’t find the facts in the media or at school, you have to hunt it down.
We so much need a return to constitution and intents of founding fathers. Legislators were charged with representing their local constituents,not a political party. Legislators also were never intended to make a.career in Washington. They were also not to be on salaries such as they are now paid. We need term limits, rules for legislative procedures to prevent political party influences.
This kind of behavior must have been present in Rome just before the Vandals took over. I will not vote for anyone who votes to postpone this appointment.
Refusing to allow a head of an agency to be appointed is the most obvious of bad politics trying to destroy or government for the benefit of those they are beholden to.
Unfortunately, Congress is the responsible party for holding up appointments. They still AND WILL CONTINUE TO STOP THE POTUS from any positive actions. GOP Get Our President
Ditto.