Donald Trump from the initial days of his campaign has been very vocal regarding his dislike for the regulations under the Consumer Financial Protection Bureau which was set up on 2010 in relation to the protection of consumer rights. It was not an unknown fact that everyone was very much sure about the possible dim future of the CFPB after Trump’s win in the Presidential election. The transition plans are in the process and it can definitely be inferred that the regulations under the CFPB are not going to remain the same and will definitely undergo a lot of changes, affecting the fast cash loans the most.
Will CFPB Undergo Annihilation?
The regulations encircling the CFPB were not something that was favored in the initial days of its proposition and was opposed by a number of lawmakers. It is Congress who is scrambling for ways to get to dismantle the entire agency but the Democratic filibuster is acting as a restriction in the process.
A member of the U.S Public Interest Research Group, Ed Mierzwinski reported that several of the anti-CFPB lawyers are seeking ways to sneak through this filibuster and be able to enforce laws to break down the entire agency. The lawmakers are suggesting independent bills to put a halt to the independent funding and simply opt for the commission type of funding.
The Strongest Opponents
While many people were definitely not in favor of CFPB and the regulations it inflicts but the most important person that has been anti-CFPB is the Chairman of the House Financial Services Committee, Rep. Jeb Hensarling. He is the one who is most likely to take the place of the Treasury Secretary.
He was the only one amidst the House Members who received contributions for his campaigns from the commercial banks. According to collections and statistics, it was found that the total contributions for the campaign amounted to over $1.9 million.
It doesn’t matter if Hensarling finally becomes the Treasury Secretary or not but his ideas and influences have already started affecting the upcoming changes regarding the CFPB. The reforms suggested by the Trump transition team is almost identical to the proposals that Hensarling previously proposed.
The Possible Changes
The most prominent opposition and appeal for changes are not made from the Transition team or even the anti-CFPB activists but from the courts. It is the head of CFPB, Dr. Richard Cordray whose power and authority has come into question. Most of the Congressmen were really upset about him coming into power and even opposed in the initial days until he was vetted by the legislature.
According to the implied rules, even the President cannot simply evict the director of the agency as per his wish. It would require a reason and implied proofs as to the show the incompetence for the removal of the director from the post he is serving.
Many of the enthusiasts are pretty much assured that Cordray might have to end up packing up his desk and come out of power after his term ends in the first month of 2018. People are speculating that the transition team under Trump has already decided on a replacement for the position and will appoint them once the former head retires. While the prior CFPB was unconstitutional, the newest changes might see the agency as a multi-membered group headed by a qualified interim director. The funding that currently comes from the federal reserves might switch to the congress. This prior proposition has been made around since the last five years but none of it has been applied till now.
The several of the bank-backed lawyers have tried to throw some light on the less talked about controversies regarding the fast cash loans and the forced arbitration which might come in handy whilst trying to dismantle or reinforce several laws under CFPB. A number of pending changes in the financial services are still in question based on the future of the head of CFPB, Cordray.
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