The Consumer Financial Protection Bureau came under fire from the House Financial Services Committee, which is now controlled by Democrats, during a hearing Thursday (March 8).
According to the Associated Press, Waters said the Trump Administration has “undertaken a sustained effort to destroy the agency.” She said she’s committed to reversing the damage caused by interim head Mick Mulvaney, who is now the acting chief of staff for Trump. Kathy Kraninger succeeded Mulvaney in December. Mulvaney was a critic of the CFPB before he was made director. When he was in charge, he called for many of the rules and regulations put in place by the CFPB to be scaled back.
The appointment of Kathy Kraninger was also opposed by Democrats due to her lack of relevant experience. Critics argue Kraninger will run the CFPB similar to how Mick Mulvaney did. Under her charge, the CFPB announced in February it will get rid of many consumer protections that the payday lending industry has to follow. This is a win for payday lenders that argued regulations on the part of the government could hurt a big portion of their business.
Kraninger told lawmakers in a hearing that the CFPB’s plans are in the proposal stage and that officials within the agency are looking at the evidence. Maxine Waters, meanwhile, has proposed legislation that would order Kraninger to reverse the moves made by Mulvaney in student loans, consumer complaints, fair lending, and other areas. It has the support of several dozen Democrats in the house, noted the report. Kraninger, for her part, took issue with the questions lodged at her by Democrats. “I absolutely take seriously the responsibility vested in me, and the decisions I take at the CFPB are my decisions,” Kraninger said.