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‘Talk about unfair and deceptive!’: Comments of week

Readers chime in on debates about ILCs, the CFPB’s arbitration rule, the financial services ambitions of tech firms and more.
Richard Cordray, former director of the Consumer Financial Protection Bureau.
Richard Cordray, director of the Consumer Financial Protection Bureau, speaks at a Senate Banking Committee hearing in Washington, D.C., U.S., on Tuesday, Jan. 31, 2012. Republican lawmakers may escalate their criticism of the U.S. over estimates that its first rule would require nearly 7.7 million employee hours of work to comply. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Richard Cordray

On a House GOP report alleging that CFPB Director Richard Cordray misled Congress about the agency’s Wells Fargo investigation:

“Unfortunately, the conclusion of the House Financial Services Committee that the CFPB did no investigation itself was painfully obvious from the get-go. Just reading the news accounts, it was clear that the L.A. City Attorney did the work, much to the embarrassment of the CFPB and OCC, who both merely piled on after being caught with their supervisory pants down. Yet, the CFPB extracted $100 million of the original $185 million civil money penalty. Talk about unfair and deceptive!”

Related: Cordray lied, botched Wells investigation: GOP report
Sign saying, "We've Moved"

On edgy disruptors, like Square and Social Finance, not coming to financial technology showcases: (via Twitter)

“You’re right! The innovators and disrupters moved on from Banks/CU. 2 much friction and regs. Working outside the bank eco/rails. #noshows”

Related: Collaboration in, disruption out at Finovate
The word "SEPARATE" in neon letters.

A retort to calls from the Independent Community Bankers of America to put a moratorium on industrial loan companies:

[ILCs] are still subject to regulations that prevent the mixing of banking and commerce. This is a blatantly protectionist play and it doesn't reflect well on community banks.”

Related: ICBA calls for two-year freeze on new ILCs
Uneven scales

Disagreeing with an op-ed contributor who said the CFPB’s arbitration rule will help make consumers whole:

“I think you mean for the attorneys of class actions to be made whole, more than whole, while the customers wait and wait and wait for their $12 coupon in the mail from the class action settlement.”

Related: CFPB’s arbitration rule is best defense for ‘wronged’ consumers
Roulette wheel

Another reader defended the CFPB arbitration rule:

Yes class action attorneys get paid handsomely — only if they win. But from the customer's point of view, arbitration gives them 12% odds of getting anything and 82% odds of getting nothing. More importantly, banks are scared to death by class action suits and therefore more likely to take prophylactic measures so the wrongs are not generated in the first place. That's why they resist class actions so fiercely. For market discipline I know where I place my bets.”

Related: CFPB’s arbitration rule is best defense for ‘wronged’ consumers
Green shoot poking out of the dirt.

On the potential financial services ambitions of tech companies:

“Regarding the specific borrowing segments that Amazon and Square are now serving, keep in mind that many disruptors start in a particular niche, build a market, then extend into other broad segments. Desktop printer manufacturers, for example, started with home offices, now dominate the printer market.”

Related: The Bank of Google or Amazon? Don’t count on it
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