Kelly Knepper-Stephens,
Stoneleigh Recovery Associates
On January 20, 2016, the House Financial Services Committee released a report prepared by the Republican staff members entitled “Unsafe at any Bureaucracy, Part II: How the Bureau of Consumer Financial Protection Removed Anti-Fraud Safeguards to Achieve Political Goals.”
The Report examined internal CFPB documents relating to the December 2013 consent order against the auto finance company Ally Financial Inc. and its subsidiary Ally Bank. The Report stated the CFPB purposefully chose to distribute the $80 million dollars in Ally Bank settlement funds “without verifying that recipients [were] eligible to receive the money.” The funds were supposed to be divided up among the African-American, Hispanic, and Asian borrowers who received higher interest rates on their auto loans than white borrowers; however, the CFPB’s method of identification and distribution resulted in some white borrowers mistakenly receiving settlement checks.
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