CFPB Director Rohit Chopra, who is a member of the Federal Deposit Insurance Corporation (FDIC) board of directors, said in a Thursday (May 11) statement that he supports the FDIC’s proposal to require banks to pay the extra cost for protecting “uninsured” depositors of Silicon Valley Bank and Signature Bank.
The bureau’s brief contends that the alleged violations of its funding structure in the Appropriations Clause do not warrant removal of existing rules, particularly the payday lending rule.
The CFPB is warning banks against reopening closed customer accounts to drive fees. In a circular published Wednesday (May 10), the Consumer Financial Protection Bureau says it had received consumer complaints that their banks have reopened accounts they had taken steps to close, charging them overdraft, insufficient fund and maintenance fees.
WASHINGTON, D.C. — The Solicitor General filed a brief with the U.S. Supreme Court on Monday in Consumer Financial Protection Bureau v. Community Financial Services Association of America defending the constitutionality of the CFPB’s funding through the Federal Reserve Board. In a statement released today, Consumer Reports voiced its support for the independent funding of the Consumer Financial Protection Bureau, which is being challenged by the payday loan industry.
Two months ago, Silicon Valley Bank and Signature Bank failed. Most Americans had never heard of these two banks. While they weren’t massive megabanks, the actions taken by the federal government make it clear that their failure had far-reaching consequences for the broader financial system.
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