Bank CEO Brings CFPB Suit To Washington
Members of the House Committee on Financial Services were familiar with Jim Purcell’s background prior to his appearance at a hearing last Thursday: Purcell is CEO at State National Bank of Big Spring, and one of the key individuals behind a lawsuit challenging the constitutionality of the Consumer Financial Protection Bureau.
But Purcell’s testimony before the House was not about interpreting the U.S. Constitution. Instead, the focus was cost — in particular, how the CFPB is hurting small, rural banks’ ability to do business.
New rules regulating financial services like so-called “high-cost” mortgage lending and international money transfers make competing with big banks difficult for smaller institutions like Big Spring, Purcell says.
“Our bank decided shortly after the CFPB’s final rule was published that it had to completely get out of the business of doing international remittance transfers,” Purcell writes. “Now, if someone in West Texas needs to send money to friends or family abroad, he may well take all of his banking business to Wells Fargo or Citibank.”