Heated House hearing for CFPB’s Kraninger as Dems go on the attack

Democrats accuse Kraninger of ignoring staff recommendations demanding compensation from organizations that defrauded consumers.

CFPB political staffers have overruled recommendations by career attorneys, resulting in the agency signing settlements with companies that include no repayments to consumers, House Financial Services Chairwoman Maxine Waters (D-Calif) charged Wednesday.

“Consumers who were cheated were left with nothing,” Waters said, as the panel received the semiannual CFPB agency report.

During a hearing featuring Director Kathy Kraninger, panel Democrats released the results of an investigation into two settlements the agency reached with companies.

The Democrats charged that in one case, Eric Blankenstein, the head of the CFPB’s Division of Supervision, Enforcement and Fair Lending, rejected the recommendation of career attorneys who said the agency should seek consumer reimbursement for abuses by Enova International, a payday lender.


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