With No Director, CFPB Spurs Financier Uncertainty
When it comes to the Consumer Financial Protection Bureau, the words of Roman philosopher Pliny the Elder ring true: “The only certainty is that nothing is certain.”
For the past year, lenders have been keeping close tabs on the CFPB, the agency created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to police lending. Yet without a director ― though former Ohio Attorney General Richard Cordray was nominated to the post July 18 ― financiers are unsure how the CFPB will implement its broad powers to oversee the Truth in Lending Act, the Equal Credit Opportunity Act, and the Fair Credit Reporting Act.
“The uncertainty factor will continue as long as there’s no director,” said Steven Zeisel, vice president and general counsel for the Consumer Bankers Association, at the group’s conference last month. “The question is whether it benefits or harms more to have a CFPB without rulemaking authority.”
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