Robert Menendez

Menendez: New Jersey Consumers Need Congress To Act Now

Calls on Republicans to Confirm Richard Cordray as Director of CFPB

February 14, 2013

WASHINGTON, D.C. -- U.S. Senator Robert Menendez (D-NJ) today joined 54 of his Democratic and Independent colleagues in a letter to President Obama, commending him for his support for the Consumer Financial Protection Bureau (CFPB) and for renominating Richard Cordray to be Director.  The letter informs the President that a majority in the Senate supports the nomination of Richard Cordray to be director of the CFPB and opposes any structural changes to the Consumer Financial Protection Bureau.

"I applaud President Obama who, despite years of Republican push back, has stayed on course in creating an agency dedicated solely to watching out for consumers," said Menendez. "I fully support the President's renomination of Richard Cordray who, in his first year at the helm, has proven to be an effective, fair Director with a common-sense approach."

Failing to confirm Richard Cordray as Director could leave uncertainty regarding the regulations that CFPB has already issued and that have been widely praised by consumer groups and industry alike.  The CFPB needs full and unambiguous authority to protect active duty military and veterans from financial fraud and abuse, level the playing field to make lenders that are not banks abide by the rules, provide certainty to lenders on what rules they need to follow in making mortgages so they can extend credit to borrowers, and help tens of millions of Americans navigate a complicated marketplace filled with predatory practices.

Menendez added: "I cannot believe that years after the financial crisis, we are still defending the nomination of  Richard Cordray and the agency itself against Republicans who have made it clear that they are looking out for Wall Street, not Main Street. New Jersey consumers deserve and demand an effective 'cop on the beat' to protect them from predatory mortgage lending, abusive credit and prepaid card practices, and other irresponsible behavior that caused the nation's financial crisis. I urge my Republican colleagues to swiftly confirm his appointment so that the agency can continue its necessary work."

The CFPB was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act and was supported by a bi-partisan majority of the Senate and signed into law on July 21, 2010.  Republicans in Congress have vowed to block any nominee, including Richard Cordray, unless the powers and funding of the agency to crack down on bad financial practices are first weakened.
 
The full letter is below.
 
Dear Mr. President,
 
We strongly support your decision to renominate Richard Cordray to be Director of the Consumer Financial Protection Bureau (CFPB), and pledge to do all we can to secure his confirmation without delay.  Under Director Cordray’s leadership, the CFPB has proved to be an accountable, transparent, and fair regulator, responsive to appropriate Congressional oversight.  We admire the effective manner in which he has established the Bureau’s reputation as a professional, informed, and careful steward of the public trust.  Moreover, it is clear from their public comments that many of our Senate colleagues on the other side of the aisle who oppose his nomination - and even many representatives of the financial services industry who were originally skeptical of his appointment - agree that he is well qualified and has prudently exercised the authorities of the CFPB.
 
As supporters of strong and effective consumer protection, we oppose efforts to weaken the CFPB through structural changes, including as the price for Senate approval of Director Cordray’s nomination.  Never before has a President’s nominee to lead an agency been blocked, because a minority of Senators do not support the existence of the agency.  It is important to remember that most of the significant checks and balances embodied in the agency’s structure reflect bipartisan ideas agreed to by a supermajority of the Senate when the Dodd-Frank Wall Street Reform and Consumer Protection Act was approved two and a half years ago, and there is absolutely no evidence that the agency’s structure requires change. Attempts to force relitigation of issues related to CFPB’s funding and organization by filibustering Director Cordray’s renomination (or that of any other nominee for CFPB Director) are irresponsible and inconsistent with our democratic values.
 
One of the most basic lessons learned from the Great Recession was that the failure to adequately protect American consumers has consequences not only for individuals and families, but also for the health of America’s economy.  Without a strong CFPB with a Director at its helm to implement critical reforms and level the playing field between banks and non-banks, our still fragile economic recovery could be dealt a serious setback.  If consumers have confidence in the instruments of consumer finance, they will borrow and spend responsibly, and the risks of a repeat economic crisis will be greatly reduced.  But to spread doubt about the future of one of the major, new institutions designed to bolster confidence in the consumer financial system could substantially increase those risks.
 
We support a strong Director to lead the CFPB, to protect consumers and to provide market certainty.  A bipartisan majority of Americans support the agency as currently constituted, and so do we.  We pledge to work with you to strengthen the CFPB’s ability to protect consumers, and we renew our commitment to do all we can to secure Richard Cordray’s confirmation without delay.
 
Sincerely,

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