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Published: November 2020

Allies urge CFPB Director not to weaken its enforcement arm

A coalition of more than 80 consumer and civil rights groups urged the Consumer Financial Protection Bureau’s (CFPB) Director Kathy Kraninger to "abandon" her "October Surprise" proposed reorganization. Instead of strengthening the arm of the CFPB that holds predatory financial institutions accountable, the proposal would drastically weaken its authority, independence, and ultimately, effectiveness, leaving consumers vulnerable and defenseless during an already financially stressful time.

A pandemic that’s already done so much harm on family finances is no time to weaken the Consumer Financial Protection Bureau’s (CFPB’s) enforcement arm. Yet, a recent proposed change by CFPB Director Kathy Kraninger amounts to the single most effective effort by the CFPB to weaken its own enforcement arm since the Trump administration took over. It cuts across all industries and products overseen by the Bureau. Coalition members warn Director Kraninger that the proposed reorganization could not come at a worse time, with consumers reeling from the current financial crisis resulting from the COVID-19 pandemic. With long term unemployment numbers on the rise, consumers are struggling to cover basic living expenses, making them more likely to resort to payday, car title, and other high cost loans, and build up credit card and other forms of debt.

Lead Organization

U.S. PIRG

Other Organizations

Allied Progress | Americans for Financial Reform Education Fund | Better Markets | CAMBA Legal Services, Inc. | CASH Campaign of Maryland | Center for Calif Homeowner Association Law | Center for Economic Integrity | Citizens Action Coalition of IN | Columbia Consumer Education Council | Consumer Action | Consumer Assistance Council, Inc. | Consumer Federation of America | Consumer Federation of California | Consumer Reports | Consumers for Auto Reliability and Safety | Demos | Law Offices of Rebecca Darchuk | NAACP | National Association of Consumer Advocates | National Association of Consumer Bankruptcy Attorneys (NACBA) | National Community Reinvestment Coalition (NCRC) | National Consumer Law Center (on behalf of its low-income clients) | National Fair Housing Alliance | National Urban League | New Jersey Citizen Action | North Carolina Justice Center | Prepare + Prosper | Prosperity Now | Public Citizen | Public Justice | Public Justice Center | Public Law Center | Student Borrower Protection Center | Texas Appleseed | The Institute for College Access & Success | THE ONE LESS FOUNDATION | U.S. PIRG | UnidosUS (formerly, NCLR)

More Information

Click here to read the letter in full.

For more information, please visit U.S. PIRG.

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