October 4, 2011
President Obama, when asked in an interview about Bank of America’s new debit charge, proposed the possibility of the Consumer Financial Protection Bureau taking on regulation of FIs’ post-Durbin charges. (Watch interview)
“This is exactly why we need this Consumer Financial Protection Bureau that we set up that is ready to go,” he said in an interview with ABC News, according to The Hill. “This is exactly why we need somebody who’s sole job it is to prevent this kind of stuff from happening.”
Yet one of the CFPB’s top officials responded that this was one regulatory fight where the agency does not plan to throw its hat in the ring.
“This isn’t about any one fee from any one bank,” said Raj Date, the administration’s special advisor on the CFPB, according to The Hill. “The problem is that checking accounts often come with a wide variety of unexpected costs that can quickly add up for consumers. Different banks charge different fees.”
A Senate subcommittee reportedly will vote Thursday regarding the nomination of former Ohio AG Richard Cordray to be the CFPB’s new director
“But instead of banning Bank of America’s new fee or any other new tactic of the financial services industry, the CFPB for the time being has focused its efforts on disclosure and transparency,” explains The Hill. “By making the costs of various financial products easy to understand at the outset, consumers can shop around and make an educated choice, which in turn can apply its own pressure on banks.”
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