On the Harms of Deleting CFPB
Oligarchs like Elon seek to kill a proven winner for consumers
What happens when a federal regulatory agency consistently delivers wins for consumers while also promoting choice and competition?
Well, the oligarchs get nervous.
And start talking about getting rid of it.
Like Elon and his call to “delete” the Consumer Financial Protection Bureau (CFPB).
It turns out - across both Democratic and Republican administrations - the CFPB delivers for consumers.
As a recent piece in USA Today notes:
When a company is fined, that money is returned to consumers. The agency has obtained over $21 billion in financial relief, it says, for more than 200 million Americans.
And it’s not just direct monetary relief.
The CFPB’s recent rule removing medical debt from credit reports has the potential to improve access to credit for 15 million Americans.
“People who get sick shouldn’t have their financial future upended,” said CFPB Director Rohit Chopra. “The CFPB’s final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.”
Consumer advocates believe this rule - along with rules around capping overdraft fees and ending a number of junk fees - will make day-to-day life easier for the average consumer.
“The medical debt rule shows how important the CFPB is to working people who are losing ground to corporate profiteering,” said Lauren Saunders, associate director at NCLC. “Working class folks must speak up to ensure the CFPB’s rule to limit medical debts on credit reports, and the CFPB itself, survive attacks by corporate America.”
In addition to removing medical debt from credit reports, the CFPB has also shown itself to be a reliable ally in taking on the credit bureaus directly:
The CFPB is taking Experian to court because the credit reporting giant conducted fake investigations and failed to correct errors on credit reports. These mistakes impacted access to credit, housing, and employment.
And we've still got to fight against the oligarchs and billionaires!
The idea of the CFPB needs no defense, only more defenders (Edward Abbey once said this about "wilderness" but it works for the CFPB, too!) Defend the CFPB or banks, payday lenders, Zelle and other small-time grifters will win!