CFPB Director Presents Semi-Annual Report to Senate Committee

Appearing before the Senate Committee on Banking, Housing and Urban Affairs on June 10, 2014, Consumer Financial Protection Bureau Director Richard Cordray focused on enforcement efforts of the bureau and complaint numbers, including those related to debt collection. The hearing was held in conjunction with the release of the bureau’s semi-annual report.

“As of June 1, 2014, we have received nearly 375,000 consumer complaints on credit reporting, debt collection, money transfers, bank accounts and services, credit cards, mortgages, vehicle loans, payday loans and student loans,” Cordray said in his testimony to the Senate Committee on Banking, Housing and Urban Affairs.

The debt collection market continues to be a focus for the bureau, and Cordray said it is the source of the most complaints from consumers.

ACA International submitted questions to the Senate committee, which will be included in the hearing record, about the bureau’s use of debt collection complaint data to shape public policy direction. ACA also asked about the bureau’s broad-based rulemaking that would have an expansive and unduly burdensome impact on debt collectors.

The Senate committee members focused much of the hearing on student loan debt, as well as issues with mortgage and auto lending and payday loans.

Sen. Robert Menendez (D-N.J.) discussed his legislation on providing heightened transparency during the student loan process by mandating additional disclosures and protections for students and cosigners in the event of student’s severe injury or untimely death. Legislation from Sen. Elizabeth Warren (D-Mass.) to allow student borrowers to refinance their loans at lower rates was also discussed.

The impact of medical debt on consumers’ credit reports, addressed in legislation from Sen. Jeff Merkley (D-Ore.) was briefly covered before some of the Republican committee members asked Cordray about the bureau’s data gathering and building renovation costs.

“As the director is aware, another initiative that is of great concern to me is the CFPB’s big data collection,” said Sen. Mike Crapo (R-Idaho), a ranking member of the committee. “In the past, I have asked simple questions regarding the CFPB’s data collection such as how many consumer accounts the CFPB is monitoring and how it intends to use the personal information it collects. Unfortunately, my calls for transparency have been met with ramped up efforts by the bureau.”

Rep. Pat Toomey (R-Pa.) submitted questions for the record about the bureau’s data collections.

While the Senate committee heard Cordray’s report and discussed legislation, the House Financial Services Committee continued its markup of several bills focusing on transparency and accountability at the CFPB on June 10.