In its online newsletter, the U.S. Chamber of Commerce expressed its outrage that the head of the CFPB, Richard Cordray, criticized its Big Bank constituents that issue debit cards and offer ATM withdrawal services, and in particular a situation where the effective charge of overdraft fees resulted in a 17,000% APR.
Listen to the advocates of payday lending, and you will often hear them explain how their high (and fully disclosed) APRs are often a lot less than their consumers pay at alternative services offered at Big Banks that do not provide the same disclosure levels for the fees they charge. The CFPB's Cordray's 17,000% APR example makes that point clear.
How refreshing to know that the U.S. Chamber of Commerce finds 17,000% APRs defensible, and that the U.S Chamber of Commerce feels the need to take a bold moral stance against anyone who might attempt to distort and manipulate data to fit their needs. Perhaps they feel that their franchise on distortion and manipulation has been violated?
I am sure that environmentalists that hear the Chamber's rhetoric on clean coal, and the trial lawyers that have to listen to their propaganda on tort reform, will be sympathetic.
In this public statement, the U.S. Chamber of Commerce does point out what it feels are the important virtues consumer financial products:
"The Chamber strongly supports policing the financial markets for fraud and predation and helping make sure consumers have clear information about products and services so they can make informed choices"
"The consumer financial services market [is a] vital, innovative market"
"Americans rely on credit - short, medium, and long term - to improve the quality of life for themselves and their families"
"American consumers' spending, supported by access to credit, has historically been a major driver of economic growth"
Rah, rah, credit is king! So back off, mean Mr. CFPB man. Or the U.S. Chamber of Commerce's Big Bank constituents might just take their money (or actually, our money?) and go home.
The U.S. Chamber of Commerce report that expresses its outrage at the CFBP's Cordray's concern over 17,000% APRs can be found at
Just the Facts, Mr. Director