CFPB to Focus on ‘Prevention of Harm’ Under Kraninger’s Leadership

The Consumer Financial Protection Bureau will focus on “the prevention of harm” under her leadership, CFPB Director Kathy Kraninger said in her first appearance before Congress since being named head of the agency. During a four-hour hearing that was often contentious, Kraninger provided some insight into how she views the bureau’s supervisory and enforcement role.

With respect to enforcement, Kraninger said that “we need to spend time taking enforcement actions against those true bad actors who have no intention of complying. That’s where the focus should be.” She added that “ensuring that institutions who are seeking to comply and working to comply know what [the]rules are is critically important.”

Kraninger also highlighted the important role that cost-benefit analyses can play as the bureau undertakes rulemakings. “Looking at the costs and benefits and weighing those . . . is a core part of [every analysis]we should be doing with the bureau’s activities,” she said. “I am looking to do that moving forward.” She acknowledged that “when there is a burden or a cost [to regulation], the lenders are in many cases passing that to consumers. It has a consumer impact.”