You can also read Director Cordray’s full remarks on the report to the CFPB Consumer Advisory Board last week.
“Consumer reporting, also known as credit reporting, is an important market that for many years has not been very transparent and generally is not well understood by consumers. It is also one of the markets where people cannot vote with their feet by choosing another provider if they are dissatisfied, which means that industry incentives and practices are not always aligned with the interests of consumers. It is a business-to-business ecosystem where consumers traditionally have had little power to insist on improved practices or fair treatment. Nonetheless, the data managed by the consumer reporting companies – and the scores generated from that data – exert a tremendous influence over the ways and means of people’s financial lives.”
So, let’s be clear: Weakening the CFPB will weaken your financial and employment opportunity. It means mistakes on your credit reports will continue to haunt you and lower your credit score. Weakening the CFPB will allow the credit bureaus to run amok again, laughing at consumers and the regulators as they did for years.
The idea of the CFPB needs no defense, only more defenders.