CFPB Director Kathy Kraninger Highlights First Six Months of Term
Kraninger’s leadership focuses on consumer education and modernizing and reducing burden of rules.
6/11/2019 1:00 PM
Consumer Financial Protection Bureau Director Kathy Kraninger recently issued an overview of her work during the first six months at the bureau, noting efforts to streamline rulemaking processes, work with stakeholders and the recent Notice of Proposed Rulemaking (NPRM) on the Fair Debt Collection Practices Act.
“It is an honor and privilege to serve American consumers. As director, my focus is to prevent harm to consumers by using all the tools Congress gave us, including education, regulation, supervision and enforcement. I look forward to building on the efforts and progress of these first six months,” Kraninger said in a news release.
Staff and members of ACA International continue to engage with Kraninger and CFPB leadership through feedback on proposals, including the debt collection NPRM, and meetings such as the Debt Collection Town Hall held in May. Members at Hinshaw & Culbertson in Chicago had the opportunity to meet with Kraninger during her listening tour earlier this year.
According to the CFPB news release, Kraninger also visited the bureau’s regional offices throughout the U.S., engaged with staff and participated in an on-site exam.
Kraninger will host a symposium series “aimed at stimulating a proactive and transparent dialogue in the policy development process” and enacted enhancements to the bureau’s advisory committees. The first series will be June 25.
“I am committed to improving the bureau’s rulemaking process as it will lead to better policy outcomes,” Kraninger said in the news release. “Improving the rulemaking process will ensure we have clear rules of the road that protect consumers and more effectively execute the bureau’s mission. This process will increase transparency, public engagement, and thorough, data-driven analysis. To further improve our regulatory process, we are developing a way to obtain input from state and local officials, as well as an initiative to ensure that outdated, unnecessary, or unduly burdensome regulations are identified and addressed.”
Among additional rulemaking highlights this year, the bureau:
- Became a coordinating member of the Global Financial Innovation Network (GFIN), a world-wide effort to promote financial innovation that benefits consumers;
- Published a request for information concerning the need for and scope of exceptions under the Remittances Rule;
- Issued new standards the agency will use to meet its obligations under Section 610 of the Regulatory Flexibility Act to conduct reviews of certain rules to evaluate their burden on small businesses;
- Published proposed rules to delay implementation of and to reconsider the Mandatory Underwriting Provisions of the small dollar rule;
- Commenced implementation of measures to streamline and improve the Bureau’s rulemaking process, such as providing materials to the public that are easier to understand, receiving more feedback from small businesses on proposals, planning to release SBREFA panel reports earlier in the process, maximizing public engagement by generally using a 90 day comment period for complex proposals, and posting all comments submitted in rulemakings to the public docket.
The bureau also focused on several consumer education initiatives including:
- Start Small, Save Up, to increase emergency savings among consumers;
- Misadventures in Money Management financial education tool for active duty servicemembers;
- Educating consumers about mortgage closing scams;
- Educating consumers on debt collection, including steps they can take to resolve a debt, telling the difference between a legitimate debt collector and scammer, and top debt collection questions answered; and
- Releasing an education page on financial preparedness for a disaster.
“Congress charged the bureau with conducting financial education programs and ensuring consumers receive timely and understandable information to make responsible decisions about financial transactions,” Kraninger said. “We will continue to look for ways to release innovative financial education tools and partner with public and private sector entities engaged in consumer financial education to maximize the reach of these tools.”
Kraninger also shared efforts to examine and promote compliance and enforce the law under the FDCPA and Consumer Financial Protect Act, for example.
“Enforcement is an essential tool Congress gave the bureau—particularly because education, rulemaking, and supervision will not prevent every violation,” Kraninger said. “We will use enforcement against bad actors who don’t comply with the law. Ensuring that justice is served in the public interest – that is our goal in using the enforcement tool. Further, a purposeful enforcement regime can foster compliance, help prevent consumer harm, and right wrongs.”
ACA International is offering a survey for members to provide feedback on the proposed debt collection rule, now open through June 18.
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