New CFPB Strategy: Ask Violators What They Think They Should Pay, Sign Off On It

Things sure are humble under Mick Mulvaney.
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Office of Management and Budget Director and Deeply Unpleasant Man Mick Mulvaney pronounces himself quite pleased with the work he’s done in his third and fourth jobs, running the Consumer Financial Protection Bureau into the ground and making Elizabeth Warren extremely angry. During his eight months at the helm, he’s made two things very clear: Banks and others nominally regulated by the CFPB, or BCFP as he likes to call it, now run the show—with one notable exception—and those nominally doing the regulating are under no circumstances to look their “targets” in the eye or speak to them without being spoken to. Suffice it to say, the new mission statement has sunk in fast.

MickMulvaney

Mick Mulvaney, the CFPB’s acting director who has introduced pro-business changes at the bureau, said in an interview the bureau’s enforcement strategy now emphasizes negotiating with target companies to settle disputes, rather than moving as quickly as Obama administration officials did to file civil lawsuits.

Mr. Mulvaney added the CFPB would reward companies for self-reporting problems, taking that into consideration when negotiating settlements…. Since Mr. Mulvaney’s arrival in November, the bureau hasn’t sued a single company….

Lawyers say some themes have emerged from the recent settlements. Of the five cases, three concerned violations in debt collection, an area Mr. Mulvaney said he would be watching closely. Two of the three cases didn’t include compensation for affected borrowers, drawing criticism from consumer advocates.

CFPB Enforcement Is Back—With a Softer Touch [WSJ]

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