CFPB Issues Semi-Annual Report, Receives No Love

The Consumer Financial Protection Board (the "CFPB") issued its ninth semi-annual report. The Report is intended to highlight the agency's accomplishments, which, according to the CFPB, were primarily as follows:

• $44 million in compensatory payments made by financial institutions to consumers;
• $82 million of fines in enforcement actions relating to a variety of consumer credit laws;
• adoption of additional rules relating to consumer credit disclosures; and
• issuance of a number of studies primarily relating to consumer credit or consumer financial sophistication.

The CFPB Report did not mention the various political controversies surrounding the agency, most notably as to whether its structure and governance comports with Constitutional requirements. The Report included a section on CFPB budget transparency. CFPB funding is outside the control of Congress.

The Financial Services Committee met to discuss the report and to hear testimony from Director Cordray. At the meeting, Financial Services Committee Chair Jeb Hensarling (R-TX) urged President Trump to dismiss Mr. Cordray from his position, and asserted that Mr. Cordray had "shown an utter disregard for protecting markets, . . . acted unlawfully, routinely denied market participants due process and abused [the CFPB's] powers." Chair Hensarling stated that Mr. Cordray’s actions epitomized problems with the CFPB itself:

"The CFPB represents the summit of unelected, unaccountable and unconstitutional agency government."