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	Richard Cordray

Feb. 21, 2013 – Deceptive marketing, debt "traps," the intersection of debt collection and credit reporting, and discrimination are the types of problems the CFPB is continuing to monitor, bureau Director Richard Cordray said during Tuesday's meeting of the Consumer Advisory Board.

Cordray, opening a two-day meeting of the CAB, said the above encapsulate the broad issues the bureau has identified across a spectrum of consumer financial services markets. "These problems warrant everyone's attention as we concentrate on how to eliminate obstacles and open the pathway to opportunity for all Americans," he said.

Here's a brief recap of Cordray's remarks on the above-noted "four classes of problems":

• Deceptive and misleading marketing: Cordray said the bureau is focused on ensuring consumers get information that is easy to understand and use in comparison-shopping. He said the bureau's Know Before You Owe program, financial education modules and enforcement authority are are examples of the CFPB's efforts in this area.
• Debt traps: The CFPB is focused on products that trigger cycles of debt that, in turn, generate substantial costs over time. "The tell-tale sign of such products is that their success is based on a substantial percentage of users rolling over their debts on a recurring basis," he said, adding that associated fees often leave the consumer worse off than before.
• Debt collection and credit reporting: Consumers generally are unable to choose these specific providers and can become "collateral damage" to the economics that drive them. Without consumer choice, the market lacks a key discipline and the individual consumer's interests are subordinated, he said.
• Discrimination: As the CFPB and others have made clear, "we will pursue discrimination in consumer financial markets based on disparate impact as well as on intentional violations," Cordray said.

Carrie Hunt, NAFCU's general counsel and vice president of regulatory affairs, and Tessema Tefferi, senior regulatory affairs counsel, are attending this week's meeting, which concludes today.