The Consumer Financial Protection Bureau (CFPB) is set up to act as a rogue agency. The director has total autonomy to levy fines on companies, determining the amount and the timing at his or her discretion, with no review process.
It led to tremendous abuse as it was set up to do. For example, it charged auto dealers whom they were explicitly barred from regulating under Dodd-Frank, hundreds of millions of dollars.
These companies were accused of racial discrimination, even though they were not allowed to collect racial data and never did so. The CFPB determined the extent of the mythical racist wrongdoing based on people’s surname.
The fines collected did not flow into the Treasury. Instead, they accumulated in the Civil Penalty Fund, to be dispersed at the whim of the director. Aggrieved consumers saw some of that money, but only if the director said so. Most of the money went to left-wing, very left-wing groups, that in turn fund Democrat candidates campaigns.
The CFPB took the money from companies under fraudulent circumstances, put it their $170 million plus Civil Penalty Fund, and then channeled $30 million to favored organizations including planned parenthood, fraudulent ‘consumer’ advocacy groups, and other groups that fund Democrats.
It is one happy circle of leftism and it is very corrupt.
This horrendous organization had the same scheme going as the DoJ and HUD.
It’s a shakedown outfit and we’ve known about it since its inception.
There were no restrictions or supervision of leftist Richard Cordray, who will probably run for governor of Ohio.
Cordray might have benefited from a rule he pushed outlawing mandatory arbitration clauses, which would have made it much easier for consumers to sue banks.
Many viewed the proposal as a gift to trial lawyers, a group that donates heavily to Democrat politicians and might well support Cordray’s future campaign. Trump and the GOP rolled back the rule.
The CFPB was Socialist Elizabeth Warren’s brainchild – unsurprisingly.
On Monday, we posted a description of the outrageous rogue government agency, but Jonah Goldberg did a banner job of explaining what it is and why it needs to be disbanded. His description is in the video