Internal memo represents a dramatic retreat from CFPB’s critical consumer watchdog mission
WASHINGTON DC – Chuck Bell, advocacy program director at Consumer Reports, issued the following statement in response to an internal Consumer Financial Protection Bureau memo indicating that the Bureau is dramatically scaling back its supervisory and enforcement activities and deprioritzing oversight of nonbank financial firms and big tech companies that provide financial services.
“This memo represents a dramatic retreat from the CFPB’s critical consumer watchdog mission. These scaled back priorities open the door for payday lenders and predatory financial firms to engage in unfair practices that cheat consumers out of their hard-earned money. At a time when so many Americans are looking to Washington to rein in inflation and the high cost of living, it is troubling that the administration is tying the hands of the very agency established to protect our wallets.
“By easing up on its oversight of big tech firms, the CFPB is failing to address the fraud by scammers that runs rampant on payment apps and the privacy risks users can face when their sensitive financial data is collected and shared widely with other companies. This move also creates an uneven regulatory playing field that leaves consumers vulnerable to being treated unfairly since big tech companies like Apple and Google are providing many of the same financial services as banks. Given how rapidly digital financial products and services are transforming the marketplace, we need a strong watchdog to look out for consumers instead of giving big tech firms a free pass.”
Media contact: Michael McCauley, michael.mccauley@consumer.org