The Consumer Financial Protection Bureau (CFPB) announced yesterday that in September 2018 ten seats will become available on its Consumer Advisory Board (CAB), and it is now seeking applications for those positions. Here is what they are looking for:

Here’s what they are looking for:

  • Experts in consumer protection, community development, consumer finance, fair lending, and civil rights
  • Experts in consumer financial products or services
  • Representatives of banks that primarily serve underserved communities
  • Representatives of communities that have been significantly impacted by higher priced mortgage loans
  • Current employees of credit unions and community banks
  • Academics (Experts in consumer finance markets and underserved populations.) 

How to apply:

insideARM Perspective

ARM industry professionals have been applying to get on this board since its inception. To date, only two individuals have been selected: Joann Needleman, former NARCA president and currently a partner with Clark Hill, served a three-year term which ended last August; Ohad Samet, the CEO of debt collection firm True Accord, began a three-year term last September.

While Needleman was a long-time ARM industry veteran and leader when appointed to the CAB, Samet was a relative newcomer to the industry. We wrote at the time,

For those who don't recognize the name, Ohad Samet of One True Holding Company is the new member who was selected to represent the ARM industry on the Consumer Advisory Board. This is an interesting choice. Founded in 2013, his debt collection firm, TrueAccord, is based on a primarily digital collection model, which is currently considered to be unconventional for the industry. A newcomer to collections, TrueAccord is not hampered with legacy systems or processes, or evidently with clients who are too conservative to pursue the strategy. To get a sense of the firm's philosophy, read this article by Ohad, which we also published today.

In the months since Samet's appointment, the landscape has changed considerably. Former CFPB Director Richard Cordray -- who proclaimed to be a big supporter of technology (i.e. he dubbed the CFPB a "21st century agency"), stepped down. Acting Director Mick Mulvaney has stepped in and is in the process of drastically re-shaping the Bureau's mission. Mulvaney may or may not still be on board when the ten new CAB members are selected. It will be interesting to see 1) whether this will be the first board session with more than one industry representative, and 2) how much influence the CAB will have under the new leadership.

What is clear is that the momentum supporting the use of artificial intelligence, machine learning, and electronic communications with consumers (the foundation of the model employed by True Accord) is only gaining speed. In today's world of robocall blocking and labeling, and out-of-control scams, a new regulatory approach is needed. The industry's voice should be heard. 


Next Article: Bill Requiring Offshore Agents to Disclose Location ...

Tags: CFPB