June 13, 2014

CFPB before House panels on employment, more

June 16, 2014 – A House Financial Services subcommittee will again hear from CFPB witnesses on the continuing case of alleged discrimination and retaliation at the bureau on Wednesday, the same day CFPB Director Richard Cordray delivers the bureau's semiannual report to the full committee.

The House Financial Services Subcommittee on Oversight and Investigations on Wednesday will hold a hearing titled, "Allegations of Discrimination and Retaliation within the Consumer Financial Protection Bureau, Part Three," The subcommittee's investigation into CFPB workplace issues was prompted by reports published in American Banker that cited a pattern of ranking white employees higher than minority employees, as well as accusations of a hostile work environment.

The bureau recently revealed that it will use a more simplified employee evaluation system with only two performance tiers available, after an internal agency audit revealed that there were discriminatory "disparities" resulting from the previous system.

Also on Wednesday, Cordray will deliver the bureau's semiannual report to the House Financial Services Committee. Cordray participated in a similar hearing last week with the Senate Banking Committee where he discussed CFPB's proposed rule on prepaid cards, arbitration clauses and the qualified mortgage points-and-fees "cure," which is supported by NAFCU.

Cordray told the Senate Banking Committee that CFPB's proposed rule on prepaid cards should be out by the "end of summer."