Richard Corday is currently the director of the Consumer Financial Protection Bureau who recently made the announcement of his departure from the Bureau and his designation by the end of this month. The primary intention of development of this department was to ensure that customer is protected from various financial practices and companies who are intending to manipulate the benefits and interest of the customer. This department was developed specifically after the financial crisis of 2008 when the recession hit the country due to the practices of the financial companies which impacted the customer. The tensions have roused since the decision for appointing the new director of the Consumer Financial Protection Bureau relies on Trump. There are speculations that the main motive for establishing this department would be neglected after the appointment of the new director by Trump.
The department has done a great job until now by making strict rules and regulations for the financial companies related to their financial products and services. They ensured that the products and services of the financial firms are properly explained by the company to the consumer. They also developed a complaint database of all the complaints received by them against various financial companies and have a very strict and aggressive approach while investigating the complaints and approaching the companies for their misleading information and practices. There are speculations about Trump government supporting the financial companies and appointing an individual who would have a milder approach and support the financial companies. During the tenure of Cordray in the Consumer Financial Protection Bureau, the team managed to recover more than $12 million based on complaints lodged by 30 million customers. This dedication by the department wasn’t digested very well by the GOP.
This indigestion of the GOP was clearly visible through a recent decision made about overturning the rule established by CFPB related to mandatory arbitration clause which was supposed to be completely banned from the financial contracts. These rules and regulations provide safety to the consumer by giving rights for a class action lawsuit. But by overturning the rule, the customer could file a complaint but the overall payout against the lawsuit would be very less. The critics are against the leadership of Cordray and the payday lenders are the first one to cry about the new set of policies and regulations. The small-dollar loan provided by the companies is normally a debt trap which consistently increases the rate of interest which the customer is unable to pay and get caught in the trap of the lenders and financial companies. The National Consumer Law center stated that the President has the responsibility to ensure that the new director hired by him is able to continue the good work of Cordray and doesn’t try to protect the financial corporations and lenders community.