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>Before this is flagged, I would like to hear an argument for why continuing operation of this bureau would be harmful The will of the people is an impediment
by nine_zeros 2y ago
>Before this is flagged, I would like to hear an argument for why continuing operation of this bureau would be harmful
The will of the people is an impediment to businessmen wanting to scam people.
- slt2021 2y ago[flagged]
- tayo42 2y agohttps://www.consumerfinance.gov/ask-cfpb/what-laws-does-the-cfpb-enforce-en-2121/ https://www.consumerfinance.gov/ask-cfpb/what-laws-does-the-... These all look like important things to enforce?
- slt2021 2y ago[flagged]
- tayo42 2y agoIt seems like a motivation for creating it was to centralize enforcement > Backers of the idea argued that because several federal agencies were regulating the consumer banking system, there were gaps in oversight that left consumers vulnerable or confused. The new agency would consolidate those regulatory responsibilities in one place. I assume they have something equivalent. I also know consumer banking at least works differently in Africa and Europe then it does in the US. IIRC bank accounts are protected and accessed differently Your other posts on this thread seem emotional, angry and aggressive, so I'm just not going to bother engaging anymore
- slt2021 2y agothe way US bureacrats envision regulation is wrong imo. They only increase cost of doing business and add overhead on the consumer (one more document to sign that nobody reads, when closing a loan). I really dont understand what these 1700 people accomplish productive every day to justify the agency's existence. If they are doing something manual, this ought to be automated. If they are manually enforcing something - this ought to be encoded in laws and should not require post-hoc enforcement.
- throaway-1931 2y agoFrom the article: "Supporters highlight its work to penalize large companies, including banks, for allegedly mistreating clients — with the bureau claiming in 2023 that it had restored $17.5 billion to Americans over the previous 12 years “in the form of monetary compensation, principal reductions, canceled debts, and other consumer relief.” Last year, the CFPB finalized a rule capping credit card late payment fees at $8 — down from an average of $32 — which it estimated would save consumers $14 billion per year." Considering the US citizens their shareholders, I would like to see how many private organisations of that size have such an impact in just 12 years.
- senordevnyc 2y agoAssuming that $14 billion figure is accurate (and it may not be!), it looks to me like this group of 1700 people costing the taxpayer about $200k each saved the taxpayer about $8.2 million per year for each employee, or an ROI of 4000%. But yeah, it's a waste, let's shut it down.
- slt2021 2y agoCFPB's budget[1] was $500 mln 12 years ago and now is $900 mln, lets take average $700 mln over 12 year = $8.4 bln just cash outlay I highly doubt $14 bln is accurate, but even if it is, its only 70% over their carrying cost. as a hiring manager in private sector, in order to justify headcount, the benefit must exceed 3x the carrying cost of an employee. to hire $100k person, I must prove $300k benefit to the company at very least, and 5x benefit is more appreciated by management. doesnt look like a good return at all honestly 1. https://crsreports.congress.gov/product/pdf/R/R48295/2
- senordevnyc 2y agoThat was a single example of their value.
- pentel-0_5 2y agoBecause they have more sensible actors, stronger regulators, and less room for corruption that America. Maybe before you determine, without evidence, that an agency is "useless", you should be honest and dive into the details before making such a foolish statement.
- TheNewsIsHere 2y agoQuite right. The agencies offered in the parent comment don’t do the work the CFPB does, nor address the same regulatory enforcement. The only actors “harmed” by the CFPB are the actors attempting to exploit Americans. But by all means my fellow Americans, let’s see what happens when we remove the vanguard of the consumer protections instituted as a result of the subprime mortgage crisis. That’ll ultimately be so great for the economy.
- tommiegannert 2y ago> CFPB is simply not delivering on its purpose, but wasting $700 milly per year just for some bureacrats to sit on their asses and do nothing In Europe, we call that an unemployment mitigation programme. Well, we don't call it that, but that's what it is.
- slt2021 2y agoUS taxpayers feel very sick from learning about all these taxpayer funded cushy jobs for DC lawyers and clerks and aides who just push paper and get fat paycheck without any accountability, while the private industry deals with layoffs, performance improvements, at-will employment, and general uncertainty
- AnimalMuppet 2y agoOK, but if you think that's the problem, then ordering them to not perform any work doesn't look like any kind of a solution.
- sebazzz 2y ago> CFPB is simply not delivering on its purpose You can only throw such statement into the world if you would know what it would look like without the CFPB.
- slt2021 2y agohello, the world without CFPB exists outside the USA borders. People outside America also use banks and loans and credit cards
- abenga 2y agoWhy are you assuming that all countries don't have a CFPB equivalent? Do they also not have parliaments that make laws since they do not have a US Congress?
- slt2021 2y agoGermany doesnt have CFPB, so what? Nothing bad happened to Germans
- abenga 2y agoGermany has BaFin (https://en.wikipedia.org/wiki/Federal_Financial_Supervisory_Authority https://en.wikipedia.org/wiki/Federal_Financial_Supervisory_...), a federal agency that does the same thing. You missed my point entirely.