Newsroom

August 29, 2017

Hensarling asks Cordray about his motives, future at CFPB

On Monday, House Financial Services Committee Chairman Jeb Hensarling, R-Texas, wrote to CFPB Director Richard Cordray asking about his motives behind the reported rush to finalize the CFPB's payday lending rule and his future at the bureau. He asked Cordray to respond to his letter by today.

NAFCU has expressed concern about CFPB's proposed payday lending rule. If implemented, the rule's complexity and scope could impede consumer access to credit and have a particularly negative impact on the credit union industry, as it would affect almost all covered loan products provided by many institutions.

In the letter, Rep. Hensarling alleges that Cordray's rulemaking efforts are influenced by his political ambitions. It is rumored that Cordray plans to resign as director of the CFPB later this fall so that he can enter the Ohio governor's race.

In order to assuage any concerns the public might have about the CFPB's integrity in the rulemaking process, he asks Cordray to respond in writing to these three questions by today:
  • denial that political considerations have informed any decisions, orders and communications relating to the payday lending rule;
  • assurance that all records relating to the rulemaking will be preserved; and
  • confirmation that Cordray will serve his full term as CFPB director, or otherwise provide the date on which he will resign from office.
NAFCU was the only financial services trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank. The association will continue to advocate for regulatory relief for credit unions and press the CFPB to use its Dodd-Frank Act exemption authority more effectively.