CFPB Director Richard Cordray Plans To Resign

Consumer Finance Blog Nov 15, 2017 Tampa, FL

By: Murray Silverstein and Jacob Boehner

Richard Cordray announced today that he is resigning the end of this month. Cordray, an Obama appointee and the first director of the Consumer Financial Protection Bureau (“CFPB”), informed his staff of his plans, with some speculating that he has his sights set on running for governor of Ohio, his home state.

Cordray has drawn extensive criticism in his tenure as director. His resignation comes on the heels of Congress’s vote to rescind the CFPB’s final rule banning the use of pre-dispute arbitration clauses in consumer arbitration agreements to block consumers from bringing class action lawsuits. President Trump later signed Congress’s joint resolution, effectively repealing the CFPB’s final arbitration rule even after receiving a letter from Cordray imploring him to uphold the rule.

The president’s express criticism of the arbitration class action waiver rule was clear well before he signed Congress’s joint resolution. Both before and after the congressional votes, the president released statements first disapproving of the CFPB’s final rule and then praising Congress for voting to rescind it. It seems clear that President Trump will be motivated to appoint a new director who is more politically and ideologically aligned with the current administration. The resignation of Cordray is a watershed moment in the consumer finance industry as the often criticized overreaching of the CFPB is likely to come to an end with a Republican-appointed director who will likely issue more modest rules that will benefit consumers without also harming financial institutions.

*The information in this article is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Greenspoon Marder, P.A., In New York, Greenspoon Marder, P.A. practices under the name Greenspoon Marder, P.A. P.C. In California, Greenspoon Marder LLP practices using the fictitious name and trademark Greenspoon Marder under license from Greenspoon Marder, P.A., or the individual author(s), nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

About Greenspoon Marder

Greenspoon Marder is a national full-service business law firm with over 200 attorneys and offices across the United States. We are ranked among American Lawyer’s Am Law 200, as one of the top law firms in the U.S. since 2015. Our firm was founded with the goal of providing the highest quality legal services at the highest value for our clients. Each of our clients is unique and so are their legal needs. We believe no one size fits all for professional services. Our lawyers offer flexible and creative solutions to meet our clients’ respective needs. Our mission is to understand the challenges our clients face, build collaborative relationships and craft solutions with a focus on strategic goals.

MEDIA CONTACT
Natalie Villanueva, Director of Marketing
954.333.4308 | natalie.villanueva@gmlaw.com

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Next Previous

Subscribe to our
Consumer Finance Blog

Search By Author

Search By Practice Area

Search By State

Consumer Finance Blog

CFPB Director Richard Cordray Plans To Resign

Share

Subscribe to our
Consumer Finance Blog

News & Events

News & Events

Consumer Finance Blog

CFPB Director Richard Cordray Plans To Resign

Share

Subscribe to our Consumer Finance Blog

News & Events

News & Events

Subscribe to our
Consumer Finance Blog