In another shot fired at the CFPB, the Republican staff of the House Financial Services Committee says there is sufficient evidence to hold Director Richard Cordray in contempt of Congress for failing to comply with a committee subpoena for records dealing with the agency's arbitration rule.
In a report released Friday, the GOP staff said the committee's request for certain records dealing with agency decision-making has been outstanding for 471 days.
Republican committee staff members already have said that Cordray could be held in contempt of Congress over allegations that the agency failed to produce records the panel requested dealing with the CFPB's Wells Fargo probe.
Democrats have accused the Financial Services Committee Republicans of harassing the CFPB. Ranking Democrat Maxine Waters has said that a new committee rule that allows Chairman Jeb Hensarling (R-Texas) to unilaterally issue subpoenas has resulted in the committee hounding Cordray.
In the past, such subpoenas would have had to be approved by the committee.
In this latest skirmish, the GOP staff charges that Cordray has failed to produce records dealing with the agency's final rule that guarantees consumers the right to file class action lawsuits against financial institutions.
The report states that the agency has failed to produce records concerning CFPB's communications with several groups concerning the arbitration rule. Those groups are the American Association for Justice; the National Consumer Law Center; the National Association of Consumer Advocates; the Alliance for Justice; and Public Justice.
The agency also failed to send the committee all communications between CFPB employees concerning the arbitration rule, the GOP staff. The committee has requested those records as well.
The report also states that Hensarling has authorized ten subpoenas to current and former CFPB employees concerning obstruction of the committee's investigations.
The committee had requested that the bureau would not issue a final arbitration rule until the records were produced and committee staff had the chance to review them.
The agency issued the rule last month.
The House has passed a resolution nullifying the arbitration rule. The Senate may consider it when it returns in September.
CFPB spokesperson Jennifer Howard said the agency is “working diligently” with the Financial Services Committee on several oversight issues.
“On this particular matter, we have produced thousands of pages of documents thus far, and by next week we will have completely responded to one of the [categories of records] at issue,” she said. “We will continue our efforts to understand how we can respond to the Committee in a satisfactory manner.”
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