“Today, President Obama empowered a highly qualified prosecutor to combat the abuses coming from payday lenders, mortgage brokers, private student lenders, and other non-bank financial institutions—abuses that have shattered dreams and drained substantial wealth from low-wealth communities and communities of color,” said Dory Rand, President of Woodstock Institute.
“The CFPB was conceived as a cop on the beat that would protect consumers from unscrupulous financial institutions, no matter where or how they choose to do their business. With the appointment of Richard Cordray as Director, that vision will become a reality. We applaud the President’s bold move to stand up for consumers in the face of opposition by financial industry special interests and refusal by Senate Republicans to confirm the President’s nominee.”
Without a director in place, it was unclear whether the CFPB could regulate non-bank financial institutions and perform some of the functions necessary to carrying out its mission (for more details on the powers of the CFPB with and without a director, see our fact sheet). The appointment of Cordray, former Attorney General of Ohio and long-standing expert on consumer issues, ensures that the CFPB can enforce the full range of powers granted to the agency by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
For more information, contact Tom Feltner at 312-368-0310 or tfeltner at woodstockinst dot org.