During last week’s Republican debate on FOX Business, an ad paid for by the American Action Network (AAN) depicted Consumer Financial Protection Bureau (CFPB) workers robotically denying personal loans to needy individuals.
AAN paid $500,000 to run the ad seven times during the debate, attacking the agency and its champions – Senator Elizabeth Warren and CFPB Director Richard Cordray.
The ad’s dismal, Soviet-inspired concept sets the scene for misleading accusations of injustice against consumers. Warren and Cordray are portrayed on red banners as dictators while the assembly line rubber-stamps personal loan denials – a far cry from the work the CFPB actually does, such as providing ways for ripped-off consumers to hold banks accountable and reining in “payday” lenders that prey on military families.
However, beyond its sham portrayal of the bureau’s work, the ad is a symptom of a bigger problem: A concerted push to stop or delay the successful work of the agency that has returned over $11 billion dollars to harmed consumers. The real worry about the ad should be with the huge sums of money being funneled into the larger effort to thwart the agency.
A timely example of these efforts to block the CFPB’s work are right-wing lawmakers’ concurrent attempts to insert riders—or unrelated policy proposals—into the federal spending bills in order to weaken consumer financial protections issued by the CFPB, as well as undermine the structure and set-up of the Bureau.
By attacking the agency created to look out for consumer interests in the financial market, these corporate players are in-effect attacking consumers themselves.
So why is the CFPB under attack?
Follow the money. Two American Action Network board members lobby on behalf of Navient, a student loan provider currently under investigation by the CFPB (and several other regulatory authorities) for allegedly overcharging and mistreating borrowers. And another board member lobbies on behalf of both student loan and payday lending clients, practices also under examination by the CFPB. This lobbying seems to be paying off.
Policy riders that would cripple the CFPB’s ability to do its job are leaching through the appropriations process, piggybacking on budget bills. Here’s what the anti-CFPB and anti-financial reform riders would do: