CFPB Director Richard Cordray Resigns

Less than a year before his term expires, CFPB Director Richard Cordray ended several months of speculation about his future with the bureau by announcing his resignation on Wednesday.

Under Director Cordray, who said he will vacate the office by the end of the month, the CFPB faced frequent criticism over the way it carried out its regulatory, supervisory, and enforcement authority. Earlier this year, the Secretary of the Treasury released a report that detailed problems with the CFPB, both in terms of its structure and its authority, and provided recommendations to improve it.

“ACA International looks forward to working with a new director of the CFPB and demonstrating the important role that debt collectors play in the financial services market,” said ACA International President Rick Perr. “We are committed to collaborating with the CFPB’s future leadership to ensure any new policies and regulations impacting the credit and collection industry are evidence-based, well-reasoned and fair.”

Although Cordray recently announced a narrower scope and a more accelerated timeframe for the third-party debt collection rulemaking that has been underway since the CFPB released the Advance Notice of Proposed Rulemaking in November 2013, his departure from the bureau may result in further delay.

Although there is a lot of speculation about who could potentially become the new CFPB director, at this time, a replacement is not yet known.

President Barack Obama appointed Cordray to serve as the CFPB’s first director in January 2012 with a term set to expire in July 2018

Posted in Debt Collection.