CBA Launches New Website to Fact Check CFPB Misstatements and Misrepresentations of its Own Data

The Consumer Bankers Association (CBA) today announced the launch of a new website, CFPBfactcheck.com, to highlight how the Consumer Financial Protection Bureau (CFPB) continually misrepresents its own data to justify its politically-driven rulemakings. The site, which outlines specific policy examples over the last year where the CFPB used inaccurate data or asserted false conclusions, will serve as a much-needed fact checker on an agency tasked with overseeing the nation’s largest financial institutions and the millions of consumers they serve. 

CBA President and CEO Lindsey Johnson issued the following statement on the launch of the site:

“Over the last several years, it’s become apparent the CFPB has politicized financial regulatory policies to the detriment of the American consumer. The Bureau has an obligation to develop policy based on objective facts and data, not electoral politics. 

“CBA and our members strongly believe in the important role of the CFPB, while also recognizing these continued actions may harm the reputation and legitimacy of the Bureau for years to come. 

“Now more than ever, it’s imperative that ideology not play a role in ensuring the financial well-being of the millions of Americans who rely on essential banking services each and every day.”

Facts Matter on Credit Cards

Credit cards are the primary way consumers gain access to and build their credit. They are an essential banking product that provides a buffer for people when they face financial challenges.

Current CFPB proposals are bolstered by a misrepresentation of the facts and would severely impact both cost and access to credit cards.

The CFPB misrepresented their own data on:

• Competition in the credit card market;
• The prevalence of fees in the use of credit cards;
• How consumers fare with credit cards; 
• Basic risk-based pricing and how interest and rewards work;
• Who pays for credit card rewards;
• The difference in interest rates between large and small banks; and 
• The diversification, competition, and value of rewards programs.

Facts Matter on Overdraft and Non-Sufficient Funds 

CBA research has shown that overdraft services, like credit cards, act as a buffer during hard times, providing emergency funds for essentials when people need it most. Unlike credit cards, overdraft services provide extra funds for people who lack credit or have been unable to obtain credit.

Despite this, the CFPB fails to acknowledge the value of overdraft for these consumers and how banks are working to reduce costs by…

• Failing to account for the nearly 20 percent of Americans who lack credit scores and may rely on overdraft services to make ends meet;
• Ignoring the impact of bank-led overdraft innovation that has saved consumers billions and relying on outdated data to justify its proposal; and 
• Ignoring data on bank-led fee reductions to score political points.

Facts Matter on Scams and Fraud 

In a recent blog post, the CFPB highlighted an amicus brief in a case regarding the handling of consumer wire transfers that affected consumer accounts. Remarkably, the CFPB asks the court to rewrite the plain language of the Electronic Fund Transfer Act, and effectively reverse decades of settled law.

Scams and fraud are serious, multi-faceted and cross-industry problems. The financial services industry is working with stakeholders across other private sector industries to detect and protect consumers against scams and fraud, but need the CFPB and other agencies to commit to collaborating thoughtfully and earnestly in order to reduce the risks consumers face from scams and fraud—instead of just seeking headlines.

The microsite highlights CBA’s recent “Facts Matter” blog series between three categories, credit card late fees, overdraft and non-sufficient funds, and scams and fraud. To view the new Facts Matter website, click HERE.