Posted June, 10 2014On June 10, 2014, Director Richard Cordray testified before the Senate Banking Committee at a hearing entitled, “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” Key discussion topics included:
- Data Collection: As has been a topic of previous hearings, Senators Crapo (R-ID) and Toomey (R-PA) spent considerable time pressing Cordray on the agency's data collection efforts, and the ability for that information to be reverse engineered. Both have focused on this issue in the past, though of note, Senator Heitkamp (D-ND) joined them in expressing concern over the amount of consumer data being collected by banks. Cordray defended the agency's data collection efforts, hitting the media for sensationalizing details about the data fields collected. He added that the agency needed this information in order to do its job effectively, otherwise "it would be like throwing darts at a wall."
- Prepaid Cards: Menendez also questioned Cordray on the timing of a proposed rule for prepaid cards. Cordray confirmed that the agency expected to have a rulemaking completed before the end of the summer.
- Operation Choke Point: Crapo questioned if the CFPB was "participating" in Operation Choke Point, and providing advice to the DOJ. Cordray underscored the CFPB's objective of policing bank and non-bank lenders participation in illegal lending activities, though noted that there was no dialogue between the CFPB and DOJ.
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