We are less than a month away from ringing in the new year. With a new year comes new challenges. The world is embracing new technology where you can do anything from order a cup of coffee to buying a new television from the touch of your phone. With new technology comes new risks. Cybersecurity becomes a top priority when it comes to protecting both America and its consumers.
In recent years, America has become a nation built on credit. According to the ABA, the number of credit cards increased by 4% since the end of 2016 and there are 364 million open accounts across the United States. This also factors in Americans who have more than one credit card. However, this does not factor in other forms of credit like installment loans and payday lenders that charge up to 600% interest.
In response to the 2008 financial crisis, Democrats in Washington passed the monumental Dodd-Frank Act. It put a “cop on the beat” against corruption in our financial sector. The Consumer Financial Protection Bureau was established to protect consumers from bad actors. Did it solve all the issues? No. Most notably data breaches with Equifax and fraudulent credit card accounts from Wells Fargo are prime examples of why we need some enforcement on Wall Street. (1)
Unfortunately, Republicans don't share the cop on the beat philosophy. During his first year in office, President Donald Trump appointed Office and Management and Budget Director Mick Mulvaney to be his acting director of the CFPB. It is very easy to figure out just who’s side Mulvaney is on. During his runs for Congress Mulvaney has taken thousands upon thousands of campaign contributions from credit companies and commercial banks. (1)
During his tenure at the CFPB, he fired the advisory council that helped identify problems facing families that have been ripped off by Wall Street. Mulvaney has called the CFPB a “ sad sick joke” and would even demolish the agency if he could. Think about that Mulvaney would demolish the agency that would protect your family from having that kitchen table talk about how your credit card interest rate was jacked up by 25% and now you can't afford your mortgage.
Last spring, President Trump made it his intention to appoint a permanent Director of the CFPB. He chose Associate Director of the Office of Management and Budget and Mulvaney underling Kathleen Kraninger. What qualifies her to be in charge of an agency that s responsible for standing up to the big shots wanting to squeeze working Americans? Actually, nothing. Kraninger has no consumer protection experience. During her hearing, she couldn’t answer basic questions about the botched responses for hurricanes and zero tolerance policy. Basically citing paragraphs from an OMB handbook.
The Consumer Financial Protection Bureau plays a key role in shaping America. If wall street is squeezing every penny they can out of people living paycheck to paycheck they have no purchasing power. Which takes a toll on consumer confidence and would not help our economy in the long run. I hope that whoever is in the White House would appoint a CFPB Director that would want to see the agency flourish and protect Americans from bad actors. I guess that wasn’t the case. She was confirmed on a party-line vote of 50-49.
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