Richard Cordray resigns as Director of Consumer Financial Protection Bureau

Posted on: November 16th, 2017 by Steve Larson
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Richard Cordray was appointed the lead in the newly created Consumer Financial Protection Bureau by President Obama. During his tenure, the CFPB levied a $185 million fine against Wells Fargo for the bank’s infamous practice of opening phony accounts last fall. Overall, the CFPB’s enforcement actions have resulted in about $12 billion in relief for victims of these unscrupulous practices.

In addition to going after crooked financial companies, the CFPB has also released a number of consumer-focused regulations that aim to curb systemic injustices—including restrictions rolled out in October and aimed at curbing abusive payday lenders. The CFPB also pushed forward a controversial arbitration rule that aimed to allow consumers to file class action lawsuits against banks and credit card companies. Congress killed that regulation, which was hotly contested by the financial industry, at the end of October using the existing Congressional Rule Act.

Now, however, even other CFPB rules and other initiatives face an uncertain future, as a new director could roll back current agency activity.

Paul Bland of Public Justice said: “Richard Cordray has done more for American consumers than any other public servant in recent history.”