In his first appearances as CFPB Director before the House Financial Services Committee and the Senate Banking Committee, Rohit Chopra expressed his concern with the market powers of the "Big Tech giants" asking whether they have the incentive to impede the entry of new firms. He also asked how these firms would harvest and monetize data they collect on our transactions. Against that background, he reported that the CFPB had issued orders to supply information to a number of the U.S. dominant firms and will be studying the practices of the "Chinese tech giants."
The Director advocated for:
- stronger action against repeat offenders: Chopra said the CFPB will closely monitor compliance with agency and federal court orders and will coordinate with state regulators and other federal banking regulators "to fashion appropriate remedies for repeat offenders."
- restoring relationship banking: Chopra stated that "automation and algorithms increasingly define the consumer financial services market...[resulting in] less transparency into how credit decisions are made." He argued that "these practices can unwittingly reinforce biases and discrimination, undermining racial equity." He said that "preserving relationship banking is critical to our nation's resilience and recovery."
Primary Sources
- CFPB Testimony, Rohit Chopra: Bringing Consumer Protection Back - A Semi-Annual Review of the Consumer Financial Protection Bureau
- U.S. House Financial Services Committee Press Release: Waters Opening Statement at Semi-Annual Oversight Hearing of the Consumer Financial Protection Bureau
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