David Lazarus Interview with Richard Cordray on Proposed Rules for CFPB to Supervise Large Credit Bureaus and Debt Collectors

by Jeff Sovern

Here.  Lazarus has an interesting quote from Cordray: "Unlike most services or products where consumers can shop around among different providers, consumers can't do that with these businesses," Cordray said. "Consumers don't get to choose their debt collector, and they don't get to choose whether to have the consumer credit reporting agencies keep track of their credit history."

That's an important point.  Free-marketers argue that government regulation is generally unnecessary because the free market will discipline poorly-performing businesses.  But there is no free market as to debt collectors or credit bureaus, with the result that the market cannot be expected to address such businesses when they misbehave.  That's another reason we needed the CFPB as well as the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.

 

Comments

[Stanley B Scheinman]

I regret to be the one to burst the bubble but the CFPA has become infected with the same sickness as the host of other Executive Branch agencies who have created a sham face to hid their abject failure to regulate in fulfillment of their oath to protect the public Interest eg OCC,FDIC,OTS,FTC,etc.
The game they play is the same. Create a "Consumer Complaint" format on their website. Then either send it to the offending enterprise for "comment" or explain why they cannot be of assistance notwithstanding the fraud,deceit,abuse,harassmenr
The FTC responds, Sorry we just keep files. The OCC sends it to their "Consumer Assistance Office" dustbin.
Our hope for salvation, the CFPA, responds " So sorry we cannot handle individual problems no matter how egregious. We are to busy with the PR"
Fortunately,local judiciary, many State Attorney General and the Tort Bar have taken up the banner of DUE PROCESS, fairness and justice for the little guy,the indigent,the less educated and the minority
Mr Cordray is despicable.

[Consumer Litigation Group]

Finally! We get to see some CFPB action where it's most needed: abusive debt collection. I'm looking very forward to the CFPB filling in the holes in the FDCPA and applying sensible regulations.

[loans for small business]

The game they play is the same. Create a "Consumer Complaint" format on their website. Then either send it to the offending enterprise for "comment" or explain why they cannot be of assistance notwithstanding the fraud,deceit,abuse,harassmenr
The FTC responds, Sorry we just keep files. The OCC sends it to their "Consumer Assistance Office" dustbin.
Our hope for salvation, the CFPA, responds " So sorry we cannot handle individual problems no matter how egregious.