CFPB director defends regulation by enforcement
Consumer Financial Protection Bureau director Richard Cordray defended his agencyês regulation by enforcement, instead of by rulemaking, in an appearance before the Senate Committee on Banking, Housing and Urban Affairs.
After issuing its controversial bulletin on auto lending three years ago, the CFPB has taken enforcement actions against several lenders, including Ally Financial, American Honda Financial Corp. and Toyota Financial Services.
Some Committee members expressed doubts about the CFPBês enforcements, according to Automotive News. What concerns me is that the rulemaking is an entire process that requires a level of transparency and gets input,said Sen. Pat Toomey (R-RI). Thereês a cost-benefit analysis. Those parts are missing in enforcement actions, he said.Download Bulletin PDF