The Consumer Financial Protection Bureau has received its second warning for unclear and inefficient supervision from the U.S. Chamber of Commerce.
"The effect of this continued uncertainty and inefficiency is not simply to impose excessive, unjustified costs on legitimate businesses seeking to comply with the law," David Hirschman, the group's CEO said in a letter to the agency. "It directly constrains the lending, especially lending to small businesses that our economy desperately needs in order to grow and create jobs for the millions of Americans who remain unemployed."
"This is the second time the Chamber has cautioned the CFPB on its supervision and investigatory practices, and was a follow-up letter to the one first sent in July. In its most recent letter, the Chamber said the CFPB did provide information on its organizational structure and regulatory agenda. However, the CFPB has taken 'no action' on most of the Chamber's suggestions, the letter stated," writes American Banker's Rachel Witkowski.
The Chamber asked the CFPB, created under the 2010 Dodd-Frank Act, to make several changes. Among these were to have more experienced hires and a well-trained staff; better consistency among examinations and schedules; and clarify the role of enforcement attorney who attend exams.
"We are committed to doing what we can to achieve effective, efficient, complete implementation by engaging with all stakeholders in the coming year," said CFPB Director Richard Cordray in his prepared remarks before the Senate Bank Committee. "We know that it is in the best interests of the consumer for the industry to understand these rules - because if they cannot understand, they cannot properly implement."
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