Cordray Discusses Improvements in Payments System

Consumer Financial Protection Bureau Director Richard Cordray focused on payments in his remarks at a meeting with the Community Bank Advisory Council on Sept. 30 in Washington, D.C. Cordray said that the Bureau has identified four primary areas of concern regarding the payment system: transparency, security and access.

In speaking about transparency, Cordray said consumers need to be informed exactly when funds will be available after depositing a check because not knowing when a check will be credited can lead to costly overdraft and non-sufficient funds fees. In addition to transparency, the Bureau also sees the need for enhanced protections from loss, theft, or mistreatment. Specifically, Cordray says consumers should be able to reverse the unauthorized charges or prevent the unauthorized billings. Finally, Cordray said that electronic payment systems should be accessible by all consumers due to the efficiencies and federal protections they provide.

The CBAC advises the Bureau on consumer financial products or services by offering the perspectives of community banks. Members provide information, analysis and recommendations about the Bureau’s work and the impact it will have on the ability of community banks to serve their customers. Of the 18 community bank advisory council members, 12 are executives at ABA member banks — including the council’s chairman, Guillermo Diaz-Rousselot, an ABA board member and president and CEO of Continental National Bank, Miami; and the vice chairman, David Reiling, CEO of Sunrise Banks, St. Paul, Minn. The banker advisory council members serve two-year terms.