Congress Has Questions About “Risky Business”
Yesterday, a bipartisan group of Members of Congress sent a letter to the Consumer Financial Protection Bureau (CFPB) to express their concerns about a CFPB nonbank procedural rule. These eight members, many of whom serve on the House Financial Services Committee, echoed concerns that AFSA had shared with the CFPB before the rule was finalized. As the letter states, “the rule does not adequately define ‘risk to consumers,’ which is critical to successfully accomplishing the CFPB’s supervisory authority and ensuring financial institutions are in compliance.”
Labeling consumer finance companies as “risky” before an examination is completed will lead to confusion in the marketplace and would potentially deter future customers. The letter emphasizes that nonbank financial institutions provide crucial services to consumers across the credit spectrum, including low-income individuals. Assigning a business a designation of “risky” without fair and thorough investigation would limit access to credit for the at-risk consumer groups that the CFPB is tasked with protecting.
AFSA appreciates Reps. Vicente Gonzalez (D-TX), Wiley Nickel (D-NC), Henry Cuellar (D-TX), Gregory Meeks (D-NY), Don Davis (D-NC), Sanford Bishop (D-GA), Mike Flood (R-NE) and David Rouzer’s (R-NC) efforts to ensure that the CFPB provides clear guidance so that financial institutions can best serve all American consumers.
January 23rd, 2024 by gmcgurn@afsamail.org
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