Credit and Collection News : A Division of Elsos




posted on 2014-02-07 by Martin Sher

This morning I watched the 4 hour semi-annual Consumer Financial Protection Bureau (CFPB) report to the House Financial Services Committee. The CFPB is by far the most powerful and least accountable federal agency in the history of the United States. The CFPB’s only responsibility is to give a report twice a year to the committee.  However, the Committee has no real power over the CFPB. Absolutely none!

Representative Jeb Hensarling is the residing chair of the House Financial Services Committee.  In his opening remarks, Rep. Hensarling insinuated that Richard Cordray, Director of the CFPB, is not accountable to anyone.  He’s not accountable to the President of the United States, unless there’s just cause.  He’s not accountable to Congress because Congress doesn’t appropriate funds to the CFPB.  And the CFPB’s not accountable to the court system because of wording in the Dodd-Frank Act that created this powerful bureau.

Chairman Hensarling highlighted the fact that the rules that Richard Cordray makes will be the rules of a ruler, not rules of law. I have not met Richard Cordray.  I am sure he’s a fine, well-intentioned human being and will be a great ruler. But do we really want to have an agency with the power of a king?

I’m particularly concerned about the availability and extension of credit to honest, well-intentioned, hard-working Americans with low to medium incomes. Who’s looking out for them?  They need cars for transportation to work, suitable places to live such as manufactured housing, basic kitchen appliances like refrigerators and washing machines, furniture, and the necessities of life. This well-meaning group of people many times isn’t blessed with any savings. They often run into a problem and need a short-term loan to survive and pay critical bills.

I hope and pray that the CFPB, by its actions and rules, do not impede this group of worthy Americans access to credit.  I spent a good bit of my adult life servicing this group of people in a family furniture business.  Our target market was people with a lack of or damaged credit.  We extended them credit when no one else would.  We counseled with them, encouraged them, and helped them establish or reestablish their credit.

This improved their credit scores and opened up more credit alternatives for them.  It also helped them raise their standard of living. Who’s going to watch out and service this very large segment of the US population? Will Richard Cordray and his bureau overreact from the past financial fiasco and make it impossible for millions of Americans to have access to credit?  I hope not.

Rep. Hensarling set up a place on his website where people can go to share their negative experiences with the actions of the CFPB. I am very appreciative of this.

Unfortunately, the low or moderate income individuals and families who have or will be denied credit won’t be aware of why their credit is being denied. And most likely, they won’t be aware of this website.  That’s very unfortunate.

I encourage you to have your voice heard on how the CFPB has affected you or your business and visit The Committee of Financial Services website here to share your story.


Martin Sher, Co-CEO of AmSher Collection Agency and a past president of ACA International, is the author of the Collector’s Pledge. Hundreds of thousands of collectors all over the world have signed this unique document committing to treat people with dignity and respect. AmSher is known as the collection agency that collects with compassion.