Having survived the Trump Administration, the Consumer Financial Protection Bureau should reassert its authority and issue tough rules on payday lending, overdraft fees and debt collection, U.S. PIRG, a public interest and consumer group, said in a new report.
“The CFPB has shown its promise in its first 10 years of operation, as well as its resiliency in the face of efforts to defund and defang it and to undermine its mission during a recent period of questionable leadership at the Bureau,” US PIRG said, in a report evaluating the agency’s first ten years.
The group recommended that the CFPB halt implementation of its 2020 payday lending rule and “fix it.”
When the payday rule originally was issued in the Obama Administration, it included strict regulation of payday lending, including a provision that required borrowers to demonstrate their ability to repay the loan before it was approved.
The Trump Administration re-wrote the rule and among other things, the new rule deleted the ability-to-pay requirement.
U.S. PIRG said the CFPB, under President Biden, has delayed implementation of debt collection rules that had been issued during the Trump Administration. The group said that the agency should rewrite the rule and further limit the number of telephone calls a debt collector may make each week. In addition, the rule should require that consumers who want to receive electronic communications opt into the service, rather than requiring consumers who do not want to receive such communications to opt out of the service.
Finally, the group recommended that the CFPB use its rulemaking and enforcement changes to force changes at the nation’s credit bureaus, contending that consumer complaints about bureaus consistently are at the top of the agency’s complaint data base.