NAACP-Supported Nominee Richard Cordray’s Confirmation Vote Next Week

NAACP-Supported Nominee Richard Cordray’s Confirmation to Head The Newly Created Consumer Financial Protection Bureau to be Voted on by The Full US Senate Next Week

The confirmation of Richard Cordray, the former Attorney General of Ohio who was nominated by President Obama in mid-July, 2011 to serve as the first confirmed Director of the newly created Consumer Financial Protection Bureau is scheduled to come up for a vote in the full US Senate as early as Thursday, December 8, 2011.  The NAACP strongly supports this nomination as we are convinced that he will be fair, even-handed, and that he will do an excellent job of protecting all Americans as they navigate the sometimes confusing and challenging world of financial products. We are also convinced that he will be able to provide much needed guidance on issues which may pertain to the special challenges which have plagued and continue to face racial and ethnic minorities, including African Americans.

The urgency of expeditiously confirming Mr. Cordray to this position cannot be understated:  until the Bureau has a Director, the new CFPB cannot gain its full authority to protect and inform consumers, including racial and ethnic minorities, workers, service members and seniors from unfair practices by banks, payday lenders and other financial firms.  Sadly, some members of the Senate have indicated that they intend to block even the consideration of Mr. Cordray’s nomination by the full Senate because they are opposed to the structure or mission of the CFPB.  The CFPB, which was created under the 2010 Dodd-Frank Financial Reform law, is intended to protect and inform consumers of unfair practices by banks, payday lenders and other financial servicers, just began operations in July of this year.  It would also have an Office of Fair Lending, whose primary focus would be to develop and implement rules so that racial and ethnic minority consumers, as well as other groups which have been targeted for too long by unscrupulous financial servicers, will not be taken advantage of by predatory lenders when they try to purchase a home, buy a car, or obtain a credit card because of their race or ethnicity.

In addition to supporting Mr. Cordray, the NAACP staunchly opposes any moves which may diminish or undermine the CFPB or otherwise impede it from reaching its full potential.  Any proposals which would result in a weakening of the mission of the CFPB would result in fewer protections for American consumers in general, and racial and ethnic minorities in particular.  Emasculating the CFPB, before it even gets off the ground, would result in a return to the system of inadequate financial supervision that failed taxpayers, depositors, investors, homeowners and other consumers.

THUS THE NAACP STRONGLY SUPPORTS RICHARD CORDRAY’S CONFIRMATION TO LEAD THE CONSUMER FINANCIAL PROTECTION BUREAU AND URGES EVERY SENATOR TO VOTE FOR THE NOMINATION TO MOVE FORWARD AND THEN TO SUPPORT CONFIRMATION.

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