BARTLETT NAYLOR: Some of the most conspicuous problems has to do with debt collection and payday loans. These are the high interest rate loans. The CFPB has substantial authority under UDAP – Unfair, Deceptive and Abusive Practices. Mulvaney has either terminated investigations or sharply reduced the restitution that consumers might bring. So, for example, last week he announced the penalty for a company of something like a half a million dollars. But the restitution, which was millions, tens of millions of dollars, he eliminated. So in other words, the company may have enjoyed ill-gotten gains, but it doesn’t have to give those back to the actual victim. Again, under Obama’s director, they had returned some $12 billion to nearly 30 million consumers.
BETWEEN THE LINES: Tell us about Kathleen Kraninger, Donald Trump’s nominee to become the next director of the Consumer Financial Protection Board.
BARTLETT NAYLOR: The naming of Kathleen Kraninger as the director adds to the insult. She has zero background in finance. Zero background in banking. Zero background in consumer protection. She is about 43 years old. Currently, she is a lieutenant for Mick Mulvaney at the Office of Management and Budget. Before that, she worked at the Department of Homeland Security. In addition, she has worked as a staffer for a number of the United States senators. But notice in all of that, I’m not saying anything about working for a bank, working for a consumer protection agency. The word “finance” doesn’t come up. Her confirmation hearing last Thursday before the Senate Banking Committee, um, went into subjects where she was expert at OMB. She oversees five or six departments, two of which oversaw the caged children deterrent policy, that family separation policy at the borders. And while she’s been touted as a manager, she declined to offer any details about her responsibility or even her opinion about the morality of separating children at the border to serve as a deterrent message to people further in Central America, for example, who might contemplate bringing their families as refugees to the United States. She was asked by (Sen.) Elizabeth Warren, by Sen. Jack Reed, by Sen. Brian Schatz. “What’s your opinion of that?” In response to that and every question was (basically) “I appreciate your question, but it’s inappropriate to offer.”
BETWEEN THE LINES: Although the Republicans control the Senate, is there any chance that the senators might reject Kathy Kraninger as the next head of the CFPB?
BARTLETT NAYLOR: There is a reasonable chance based on the questions. I did not hear any support. I heard concern by all of the Democrats on the committee. if her nomination clears with complete Democratic opposition, it is possible as you know, that one or two Republican senators might oppose her. It’s clear that that both the border children deterrence policy, the Puerto Rican issue – our problems that cross the political lines – that there are certainly Republican senators that understand that these are local examples of mismanagement. If she is being touted as somebody who – while she lacks any financial consumer protection background – is an expert manager, then at least one or two of these Republican senators might be convinced that this is not the right person.
