CFPB Acting Director Mick Mulvaney Recommends Statutory Changes in His Semiannual Report to Congress

Mulvaney’s recommendations for changes to the CFPB focus on accountability, funding and leadership authority. He will testify before the House Financial Services Committee April 11 on matters contained in the report.

4/2/2018 4:00 PM

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CFPB Acting Director Mick Mulvaney Recommends Statutory Changes in His Semiannual Report to Congress

Consumer Financial Protection Bureau Acting Director Mick Mulvaney recommends that Congress make several changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act as a means to “establish meaningful accountability” at the bureau.

ACA International last week announced that Mulvaney will keynote its Washington Insights Conference May 21-23 at The Madison Washington, D.C.

Mulvaney’s recommendations outlined in his first semiannual report to Congress include:

1. Fund the bureau through Congressional appropriations;

2. Require legislative approval of major bureau rules;

3. Ensure that the director answers to the president in the exercise of executive authority; and

4. Create an independent Inspector General for the Bureau.

“The Bureau is far too powerful, with precious little oversight of its activities,” Mulvaney said in a news release. “The power wielded by the director of the bureau could all too easily be used to harm consumers, destroy businesses, or arbitrarily remake American financial markets. I’m requesting that Congress make four changes to the law to establish meaningful accountability for the bureau. I look forward to discussing these changes with Congressional members.”

In general, ACA International supports similar measures for accountability at the CFPB, including past legislative proposals to change its leadership, funding structures and to designate an inspector general for the bureau.

In addition to the legislative recommendations, the semiannual report focuses on the bureau’s work between April 1, 2017, and Sept. 30, 2017, the period before President Donald Trump appointed Mulvaney the acting director.

The report also focuses on consumer complaints received at the bureau. It handled approximately 317,200 consumer complaints between Oct. 1, 2016, and Sept. 30, 2017. Both debt collection and credit reporting represented 27 percent of complaints handled by the CFPB during that time, according to the press release. Companies responded to approximately 93 percent of complaints submitted for response during that time period.

ACA International has reviewed debt collection complaints submitted to the CFPB through its Consumer Complaint Database. The findings in the white paper, “A Review of Debt Collection Complaints Submitted to the Consumer Financial Protection Bureau’s Complaint Database in 2017,” suggest that while the overall raw number of complaint submissions appears high for the debt collection industry, once the data have been properly contextualized, the number of consumer complaints is remarkably low. This finding remains consistent despite the CFPB’s overly broad characterization of what constitutes a complaint.

For example, ACA’s analysis shows the total number of debt collection complaints received by the CFPB represents an incredibly small number of consumers (0.005 percent) who had contact with the debt collection industry during 2017 and are remarkably consistent with other financial services industries. Further, the complaints account for only 0.06 percent of all Americans estimated to have a debt in collection.

Mulvaney’s report also notes the CFPB is continuing to work toward releasing a proposed debt collection rule concerning “FDCPA collectors’ communications practices and consumer disclosures.”

ACA International looks forward to hearing Mulvaney’s testimony on the report before the House Financial Services Committee April 11 as well as his reflection on CFPB processes as the keynote presenter at the member-exclusive Washington Insights Conference May 21-23. ACA International members will benefit greatly from Mulvaney’s perspective on the work of the CFPB.

Read Mulvaney’s complete semiannual report to Congress here.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

CFPB Acting Director Mick Mulvaney Recommends Statutory Changes in His Semiannual Report to Congress

Consumer Financial Protection Bureau Acting Director Mick Mulvaney recommends that Congress make several changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act as a means to “establish meaningful accountability” at the bureau.

ACA International last week announced that Mulvaney will keynote its Washington Insights Conference May 21-23 at The Madison Washington, D.C.

Mulvaney’s recommendations outlined in his first semiannual report to Congress include:

1. Fund the bureau through Congressional appropriations;

2. Require legislative approval of major bureau rules;

3. Ensure that the director answers to the president in the exercise of executive authority; and

4. Create an independent Inspector General for the Bureau.

“The Bureau is far too powerful, with precious little oversight of its activities,” Mulvaney said in a news release. “The power wielded by the director of the bureau could all too easily be used to harm consumers, destroy businesses, or arbitrarily remake American financial markets. I’m requesting that Congress make four changes to the law to establish meaningful accountability for the bureau. I look forward to discussing these changes with Congressional members.”

In general, ACA International supports similar measures for accountability at the CFPB, including past legislative proposals to change its leadership, funding structures and to designate an inspector general for the bureau.

In addition to the legislative recommendations, the semiannual report focuses on the bureau’s work between April 1, 2017, and Sept. 30, 2017, the period before President Donald Trump appointed Mulvaney the acting director.

The report also focuses on consumer complaints received at the bureau. It handled approximately 317,200 consumer complaints between Oct. 1, 2016, and Sept. 30, 2017. Both debt collection and credit reporting represented 27 percent of complaints handled by the CFPB during that time, according to the press release. Companies responded to approximately 93 percent of complaints submitted for response during that time period.

ACA International has reviewed debt collection complaints submitted to the CFPB through its Consumer Complaint Database. The findings in the white paper, “A Review of Debt Collection Complaints Submitted to the Consumer Financial Protection Bureau’s Complaint Database in 2017,” suggest that while the overall raw number of complaint submissions appears high for the debt collection industry, once the data have been properly contextualized, the number of consumer complaints is remarkably low. This finding remains consistent despite the CFPB’s overly broad characterization of what constitutes a complaint.

For example, ACA’s analysis shows the total number of debt collection complaints received by the CFPB represents an incredibly small number of consumers (0.005 percent) who had contact with the debt collection industry during 2017 and are remarkably consistent with other financial services industries. Further, the complaints account for only 0.06 percent of all Americans estimated to have a debt in collection.

Mulvaney’s report also notes the CFPB is continuing to work toward releasing a proposed debt collection rule concerning “FDCPA collectors’ communications practices and consumer disclosures.”

ACA International looks forward to hearing Mulvaney’s testimony on the report before the House Financial Services Committee April 11 as well as his reflection on CFPB processes as the keynote presenter at the member-exclusive Washington Insights Conference May 21-23. ACA International members will benefit greatly from Mulvaney’s perspective on the work of the CFPB.

Read Mulvaney’s complete semiannual report to Congress here.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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