Newsroom
Cordray: 4 classes of problems under scrutiny
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.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.