CFPB Launched Simpler Credit Card Agreement Without Confirmed Director

CFPB launched simpler credit card agreement form

Consumer Financial Protection Bureau has already become a kind of symbol of the Obama administration’s efforts to rein in excess of Wall Street. However, on Thursday the Senate didn’t manage to muster 60 votes which had been necessary to confirm the president’s pick to run the agency. Anyway, after the vote Obama said that he considered sidestepping the Congress with the recess appointment.

The confirmation of Richard Cordray failed after the Senate voted 53-45. Still, Obama said that they are not going to give up and will continue the campaign for Cordray. The US president considers all his options including even the recess appointment of Cordray while Congress is not in session.

Bureau Can’t Regulate Non-Banks

The consumer bureau can’t wield new powers without the confirmed director. For now, the agency can’t regulate non-bank financial products like student loans, cash advance loans, check cashing services and debt collectors. In addition, the CFPB has no power to regulate mortgage services and originators which played a sufficient role in the financial crisis by providing subprime mortgages to the households which couldn’t afford such loans.

Simpler Credit Card Form

Meanwhile, on Wednesday the CFPB has launched the campaign that is aimed to make the credit card agreements easier. The new credit card form is broken down in three sections, including charges, costs and additional information. It is more transparent and features the data high up on interest rates, fees and other information. At the moment, the bureau is asking the public for the feedback on the simplified credit card form.

Under the pilot program, the new modified credit card agreement will be offered to the customers of Pentagon Federal Credit Union. According to DailyFinance this way the agency will be soliciting consumer feedback.

Announcing the program, Raj Date – a special adviser to the Treasury – stated that people easily got confused looking through the pages of legal fine print in their credit card agreement in attempt to find out the way their cards work. With the help of the new form that is easy to understand, consumers will be able to see the terms of the deal clearly.