Magazine article American Banker

Mulvaney to Drop Public Complaints against Firms, Change CFPB Name

Magazine article American Banker

Mulvaney to Drop Public Complaints against Firms, Change CFPB Name

Article excerpt

Byline: Rachel Witkowski

WASHINGTON -- Acting Consumer Financial Protection Bureau Director Mick Mulvaney vowed to bankers on Tuesday that he would halt the agency's actions against indirect auto dealers, stop posting consumer complaints online and change the bureau's name.

Mulvaney, speaking to more than 1,300 bankers at an American Bankers Association conference, addressed two major areas that the industry has long argued was statutory overreach by the prior leadership at the agency.

"We are going to do what the law says, but not what the law doesn't say," said Mulvaney, who brought the bureau's statutory book to point to where the agency had limitations.

For example, Mulvaney cited a statute in the Dodd-Frank Act that restricted the CFPB from going after auto dealerships. The CFPB, under previous director Richard Cordray, did not cite auto dealers directly but went after a handful of major lenders that partner with dealerships, arguing the lender was responsible for unintentional discriminatory lending at the dealer.

The industry and conservatives have long argued the CFPB overreached in this area. And there are ongoing efforts by Republicans to repeal the CFPB's 2013 guidance that warned indirect auto lenders of such enforcement. Mulvaney added that the bureau is "going to pay attention to these sorts of limitations" that restricted the CFPB from citing auto dealerships.

"We are going to look at those, we are going to follow those and we're going to abide by those" limitations, he said.

Another area that Mulvaney plans to rein in is the CFPB's public consumer complaint portal. The industry has argued the complaints are not fully vetted before being posted online, which can create reputational harm.

Mulvaney in March released a request for public comment on how the agency should handle its consumer complaints. …

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