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View from CBA - May 1, 2015
CFPB to Host Student Debt Field Hearing in Milwaukee
Earlier this week, the CFPB announced next month in Milwaukee, WI it will hold a field hearing on student debt. The hearing will take place on Thursday, May 14 at 11 a.m. EST and will feature remarks from Director Richard Cordray, industry representatives, consumer groups, and members of the public.
The Dodd-Frank Act required the creation of a Private Education Loan Ombudsman at the CFPB to consider issues facing borrowers of private education loan programs and to make appropriate recommendations for addressing their concerns. The Private Education Loan Ombudsman releases two reports each year analyzing student loan complaints and oftentimes making policy recommendations. Lately, these have focused on servicing concerns. The field hearing on student debt will likely highlight issues raised in the Bureau's upcoming "Semi-Annual Update" of the Private Education Loan Ombudsman.
We have always believed in financing education in a responsible manner. Of the approximately $1.2 trillion in outstanding student loan debt, only about seven percent are private student loans. Furthermore, the loans our members are offering are working for their borrowers – with 97 percent repaying on time. As the CFPB begins addressing the greater question of student loan debt, we hope it focuses on issues like the sky-rocketing cost of college and promoting responsible lending by the largest lender: the Education Department.
Data Security Companion Bill Introduced in House
CBA applauds Representatives Randy Neugebauer (R-TX) and John Carney (D-DE) for introducing the Data Security Act of 2015. Like the Carper/Blunt Data Security bill introduced last month, this bill would level the playing field by ensuring a shared responsibility between merchants and banks to protect consumers' information. CBA strongly supports this legislation and is pleased to see this issue gaining traction in Congress.
Six Must-Haves for Retail Banking in a Millennial World
This week, more than 50 attendees participated in our FICO hosted webinar entitled: "6 Critical Needs for Retail Banking in a Millennial World." As highlighted at this year's CBA LIVE, consumers are driving our agenda. So, FICO's Joshua Schnoll and Kevin Poole used this webinar to examine Millennials' expectations of their bank relationships. Both the Millennials' must-have lists and FICO's suggested ways to quantify these customer experiences cannot be missed. An archive of the webinar can be viewed here.
What We're Reading
The Virtual Candidate: Elizabeth Warren isn't running, but she's Hillary Clinton's biggest Democratic threat – The New Yorker
The CFPB, Not What It Was Hoped To Be – Hester Peirce
Chip-and-PIN Security for Payment Cards Won't Happen Until 2020: Forrester – The WSJ
Comerica announced Curtis Farmer as its new President. Farmer had been the Head of Retail Banking and Wealth Management.
Congratulations to Kirk Pressley who was named Chief Financial Officer at BBVA Compass!
Two former CBA team members at McGraw Hill Financial received big promotions this week. Congratulations to Courtney Geduldig, now Executive Vice President, Public Affairs, and Darlene Rosen Koetter, now Head of Government Relations.