President Biden Most Impressive Act Went Unnoticed: CFPB
By MacKenzy Pierre
The estimated reading time for this post is 174 seconds
The CFPB leadership has changed. President Biden wasted no time. In his first four days in office, he issued 30 executive orders, presidential memoranda, and agency directives on the economy, immigration, government accountability, and more.
Many of the new president’s executive orders reversed Trump’s policies, so they got most of the mainstream media coverage.
The resignation of Kathy Kraninger from the Consumer Financial Protection Bureau (CFPB) received minimal coverage from the media. Still, that’s one of the decisions that the middle class can benefit from significantly.
The Consumer Financial Protection Bureau (CFPB)
The CFPB was created following the 2008 financial crisis. The purpose of the watchdog agency is to assure that American consumers are protected against predatory financial products.
In July 2010, Congress passed, and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB. Congress wanted to create a strong and independent regulatory agency. The director will serve a 5-year term and can only be removed for “inefficiency, neglect, or malfeasance.”
CFPB Results
- In 2019, CFPB received approximately 352,400 consumer complaints.
- The CFPB returned nearly $13 billion to 31 consumers from 2011 through 2017
- The CFPB has a special office to protect servicemembers, veterans, and military families.
Nearly 11 million homeowners lost their homes to foreclosure during the 2007-2009 financial crisis. A decade after the financial crisis, the middle class is still recovering. Mortgage brokers with no oversight forced working-class Americans to buy homes that they could not afford. The CFPB was created to be a guardian of middle-class Americans.
Republicans in the House and Senate started attacking the agency before Obama even signed Dodd-Frank into law, claiming that the agency was too powerful that the president should be able to fire its director at will.
The Trump Administration started to implement various actions to weaken the agency days after Donald Trump was sworn into office. Under pressure from the Administration, Richard Cordray, the agency director, resigned.
President Trump appointed Mick Mulvaney as the acting director. Mr. Mulvaney was one of the Republican congressmen who thought that the agency should not exist at all. Shortly after his appointment, he started dropping agency lawsuits filed against predatory lenders and criminal mortgage and payday lenders.
Kathy Kraninger was nominated by President Donald Trump and confirmed by the Senate in 50-49 votes. Ms. Kraninger continued implementing policies that weaken the guard wells against consumer financial abuses.
Seila Law LLC v. Consumer Financial Protection Bureau
In 2017, Seila Law, a California-based law firm under investigation by the CFPB for allegedly charging consumers illegal upfront fees for debt-relief services, refused to turn over material the CFPB.
Seila Law filed a lawsuit claiming the leadership structure is unconstitutional, and the court should strike down the rest of the act creating the CFPB as well.
In a June 29, 2020 opinion, the U.S. Supreme Court ruled that the president can fire the head of the CFPB at will. However, the agency itself lives to see another day.
President Biden Appointment
Using its newly minted power granted by the U.S. Supreme Court, President Biden asked Ms. Kraninger to resign and appointed Dave Uejio to run the agency. According to his LinkedIn profile, Mr. Uejio is a consumer watchdog veteran who has been working at the agency for nearly a decade.
With Mr. Uejio at the helm, the agency can leverage its 1500-plus employees to enforce rules on payday lending, mortgage lending, debt collection and guard the American middle class against abuses in the banking and financial services industries.
Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile
RELATED ARTICLES
Why You Have More Than One Credit Score — And Which Ones Lenders Actually Use
The estimated reading time for this post is 258 seconds Most people think they have a credit score. One number that decides if you get approved or denied. But that’s not the truth. In reality, you have dozens of scores,...
Credit Scores for Car Buyers: What Dealers Really Look At
The estimated reading time for this post is 208 seconds You walk into a dealership confident. Credit Karma says 720. The salesman smiles, runs your credit, and suddenly you’re at 660. What gives? The answer lies in the fact that...
Leave Comment
Cancel reply
Why You Have More Than One Credit Score — And Which Ones Lenders Actually Use
Credit Scores for Car Buyers: What Dealers Really Look At
Mortgage Credit Scores Explained: Why Lenders Use Old FICO Versions
Gig Economy
American Middle Class / Oct 06, 2025
Why You Have More Than One Credit Score — And Which Ones Lenders Actually Use
The estimated reading time for this post is 258 seconds Most people think they have a credit score. One number that decides if you get approved...
By Article Posted by Staff Contributor
American Middle Class / Oct 06, 2025
Credit Scores for Car Buyers: What Dealers Really Look At
The estimated reading time for this post is 208 seconds You walk into a dealership confident. Credit Karma says 720. The salesman smiles, runs your credit,...
By Article Posted by Staff Contributor
American Middle Class / Oct 06, 2025
Mortgage Credit Scores Explained: Why Lenders Use Old FICO Versions
The estimated reading time for this post is 132 seconds Why Mortgages Are Different Most mortgage lenders still use old FICO models (2, 4, and 5),...
By Article Posted by Staff Contributor
American Middle Class / Oct 06, 2025
Credit Card Scores: Why Bankcard Models Matter More Than You Think
The estimated reading time for this post is 179 seconds Credit card companies care about one thing above all: how you handle revolving debt. That’s why...
By Article Posted by Staff Contributor
American Middle Class / Oct 06, 2025
Alternative Credit Scores: Rent, Utilities, and UltraFICO
The estimated reading time for this post is 231 seconds Millions of Americans are what lenders call “credit invisible.” They don’t have enough history to generate...
By Article Posted by Staff Contributor
American Middle Class / Oct 05, 2025
Credit Scores Are Dropping Across America: Here’s Why It’s Happening
The estimated reading time for this post is 308 seconds Credit scores in the U.S. are slipping, and fast. The average FICO® Score has dropped to...
By Article Posted by Staff Contributor
American Middle Class / Oct 05, 2025
Credit Reports After Death: What Surviving Family Members Should Know
The estimated reading time for this post is 110 seconds Bottom line: The deceased person’s accounts don’t just vanish—they’re typically settled by the estate. Reports will...
By Article Posted by Staff Contributor
American Middle Class / Oct 05, 2025
How to Pull a Credit Report for a Deceased Person (and What to Do With It)
The estimated reading time for this post is 364 seconds Credit bureaus allow a spouse or court-appointed personal representative/executor to request the decedent’s credit report by...
By Article Posted by Staff Contributor
American Middle Class / Oct 05, 2025
What Happens to Student Loans, Mortgages, and Car Loans After Death?
The estimated reading time for this post is 126 seconds Short answer: Federal student loans are discharged upon death with proof; mortgages and auto loans don’t...
By Article Posted by Staff Contributor
American Middle Class / Oct 03, 2025
If You Have More Than $1,000 in Your Savings Account, Here Are 10 Money Moves
The estimated reading time for this post is 245 seconds Introduction: Why $1,000 Matters but Isn’t Enough Let’s start with a reality check. The median emergency...
By Article Posted by Staff Contributor
Latest Reviews
American Middle Class / Oct 06, 2025
Why You Have More Than One Credit Score — And Which Ones Lenders Actually Use
The estimated reading time for this post is 258 seconds Most people think they have...
American Middle Class / Oct 06, 2025
Credit Scores for Car Buyers: What Dealers Really Look At
The estimated reading time for this post is 208 seconds You walk into a dealership...
American Middle Class / Oct 06, 2025
Mortgage Credit Scores Explained: Why Lenders Use Old FICO Versions
The estimated reading time for this post is 132 seconds Why Mortgages Are Different Most...