CFPB Director Promises Transparent Rulemaking In Speech

CFPB Director Promises Transparent Rulemaking In Speech

In one of her first public speeches since being confirmed as the new director of the Consumer Financial Protection Bureau, Kathleen Kraninger outlined a vision for the Bureau that included providing clear rules to financial institutions and non-bank lenders, protecting consumers from bad actors, and empowering consumers to make sound financial choices.

Addressing an audience at the Bipartisan Policy Center in Washington, DC, Director Kraninger promised a transparent rulemaking process that allows stakeholders to submit comments, that reflects rigorous economic and market analysis, and that provides for judicial review. “Ultimately, I don’t believe anyone benefits from rules that are rushed out the door after having gone through a flawed process. Under my leadership, the CFPB will proceed deliberately and transparently in its rulemakings,” said Kraninger.

She also agreed “to take seriously our responsibility under the law to reduce unwarranted regulatory burden and to consider the impact of rulemaking on regulated entities and consumers. The CFPB must acknowledge that the costs imposed on regulated entities absolutely affect access to, and the availability of, credit to consumers.”

Director Kraninger concluded her remarks by stressing that enforcement of existing regulations and holding bad actors accountable was an “essential tool Congress gave the Bureau.”

To understand and evaluate this aspect of the Bureau’s work, “I am digging in deeper to understand how potential violations come to enforcement, what challenges they (CFPB staff) face in obtaining information necessary for the investigation, how they quantify consumer harm, how they collaborate with state and federal partners, what the interactions are like with entities of interest and third parties, how the cases develop to reach my desk through a sue or settlement decision, and the time and resources applied to our investigations and litigation,” noted Kraninger.

Members can watch the speech, or download a copy of Director Kraninger’s full remarks.