Sen. Warren Calls CFPB’s Kraninger a ‘Miserable Failure;’ Says She Should Resign

The Democratic senator who conceived of the Consumer Financial Protection Bureau more than ten years ago told CFPB Director Kathleen Kraninger that the agency is doing little to protect consumers during the pandemic.

“Your leadership has been a miserable failure based on your actions in this pandemic,” Sen. Elizabeth Warren (D-Mass.) told Kraninger during a Senate Banking Committee hearing on oversight of the agency. “You should resign.”

Citing Supreme Court Decision, CFPB Director Kraninger ‘Ratifies’ Past Agency Actions

Saying she wanted to provide the public with “certainty” about Consumer Financial Protection Bureau actions following a recent U.S. Supreme Court decision, Director Kathleen Kraninger last week ratified virtually all agency rules and policies. “The Bureau is taking action to ensure that consumers and market participants understand that the same rules continue to govern the consumer financial marketplace,” Kraninger said. Agency officials said the ratification was done “out of an abundance of caution,” following the recent Supreme Court decision that found the agency’s structure unconstitutional. The court said that the single-director structure was unconstitutional because the director could only be

Supreme Court Ruling Creates More Uncertainty for CFPB’s Future

Monday’s U.S. Supreme Court ruling upending the leadership structure of the Consumer Financial Protection Bureau did little to quell the arguments over the controversial agency and its work.

For credit union trade group and critics of the agency, the ruling did not go far enough since it did not rule the single-director structure unconstitutional. They said they hope the decision will increase the chance that Congress will enact legislation converting the agency into a commission.

CFPB Announces Advisory Opinion Pilot Program

Under a new pilot program announced last week, credit unions and other financial institutions are now able to request an advisory opinion from the Consumer Financial Protection Bureau if they are uncertain about the application of bureau rules.

The agency will make certain requests and answers public in an effort to make its interpretation of rules clearer for the public.