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Consumers Union statement on Kraninger nomination to head the CFPB

Senate takes up Kraninger nomination ten years after devastating financial crisis caused by risky lending and lax consumer protections

July 19, 2018

WASHINGTON, D.C. — As the Senate Banking Committee takes up the nomination of Kathy Kraninger today to head up the Consumer Financial Protection, Pamela Banks, senior policy counsel for Consumers Union, the advocacy division of Consumer Reports, issued the following statement:

“The CFPB is at a crossroads and its future effectiveness depends on how committed a new director will be to carrying out its critical consumer protection mission.  Senators should ask the tough questions and press Kraninger to spell out her plans for leading the CFPB and what she intends to do to ensure consumers are treated fairly by banks and other financial firms.”

“The CFPB has played a vital role for consumers by taking on financial fraud and abuse and making sure they get a fair shake in the marketplace.  Unfortunately, we’ve seen how those efforts can be seriously undermined when the Bureau is led by a director who isn’t committed to carrying out its mission.  Acting director Mick Mulvaney has taken a wrecking ball to the CFPB and appeared more intent on serving the financial industry than looking out for what’s best for consumers.”

“We can’t afford to forget the lessons we learned following the devastating 2008 financial crisis.  Weak oversight of the financial industry and lax consumer protections can result in severe consequences for both hardworking families and the economy.”

“The work of the Senate in the coming months will help determine whether the CFPB stays true to its mission to protect consumers against harmful financial practices.  That means conducting vigorous oversight of the financial industry to identify unfair, deceptive, and abusive practices; enforcing the law to stop illegal acts and seek compensation for those who’ve been harmed; establishing clear rules of the road so that financial service providers treat consumers fairly; and helping get results for consumers who file complaints.”

“Given her lack of experience in consumer protection, it is not possible to predict whether Ms. Kraninger will meet this bar.  That is why it is critical that Senators press for answers, and ensure that new leadership gets the Bureau back to doing its job.”

Michael McCauley: mmccauley@consumer.org, 415-902-9537 (cell) or 415-431-6747 (office)