WASHINGTON, D.C. – Today, Congressman Blaine Luetkemeyer (MO-03) released a statement following the Consumer Financial Protection Bureau’s (CFPB) announcement that it has rescinded a January 24, 2020 policy statement put in place by former Director Kathy Kraninger to provide clarity around what qualifies as an “abusive” act or practice.

“Director Kraninger’s policy statement gave the CFPB the tools it needed to cultivate compliance and protect consumers from abusive practices. By eliminating this statement, the Biden Administration appears to be reverting to a time when consumer protections and sound regulation took a backseat to ideological crusades. These actions make the Bureau less able to prevent consumer harm while fostering financial products that benefit consumers.”

Background:
During the Obama Administration, the definition of “abusive” was intentionally kept vague allowing the CFPB to weaponize the term to go after industries and actions of their choice. In December of 2019, Director Kraninger issued a policy statement that put in place clear rules of the road to foster a culture of compliance and maximize consumer protections. Rescinding the statement is another signal from the Biden Administration that it intends to operate the CFPB in the same punitive manner as under Director Cordray.