News Column

Ross Questions Director of CFPB on Operation Chokepoint

June 18, 2014

U.S. Rep. Dennis Ross (FL-15) questioned the Consumer Financial Protection Bureau Director Richard Cordray during his semi-annual report to the House Financial Services Committee. An excerpt from his questioning is below:

Rep. Ross: "Now there is a 17 billion dollar business out there in consumer loans and small dollar credit. Operation Choke Point, if it were to eliminate due to reputational risk this particular supply, if you will, the demand will remain, what will happen to those? What will happen to those consumers who need this particular market niche?"

Director Cordray: "What we're working on right now is potential regulations that you and I just discussed for the industry. That is not consistent with wiping out the industry, it's regulations to make sure that the industry is working in a pro-consumer fashion. That's our intent. I have recognized and acknowledged that demand for small dollar credit. People have that demand."

Rep. Ross: "And if they don't have it in a regulated fashion they're going to get it in a black market fashion, in a way that is more harmful to the consumer."

Director Cordray: "I agree with you on that."

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Source: Congressional Documents & Publications

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