You are not going to believe what CFPB spends its money on

by The CAB Man Texas on February 14, 2017

I just about fell out of my Toyota Prius when I learned what the CFPB spends its money on.  Anyone who has been watching the CFPB has probably heard about how the expenses there are out of control, but this was a mind blower.  Come to find out, they have actually been getting looked at by the “Government Accountability Office” regarding the recklessness of their spending…

For starters – Advertising is the #1 expense at CFPB and this was discussed in a Wall Street Journal article awhile back.  Here’s that story:

It is a shame to say that with all of that advertising budget they can only manage to give up 150 or so complaints per month from the entire country.  About 15 million people have a loan out at any given time during a month in the United States.  That’s a complaint % of .00001 (yes that is four zero’s on the right side of the decimal).  We have cited the statistics before from the CFPB Monthly Complaints report and the “Payday” Industry complaint percentages drop 15-2-% each month since they have been getting tracked!  So, needless to say the advertising dollars spent by the CFPB preying upon consumers and trying to coerce them into complaining have not been working.  Specific to our industry, this is particularly telling of the high level of satisfaction our customers actually have, and that the “payday loan” issue is highly politicized.

That brings me to payroll at the CFPB – it is incredible what these people are getting paid.  See below for some comments from an article that came out in The Washington Free Beacon on February 9th:

“Some of the larger salaries at the agency have eclipsed those paid to some of the country’s most influential lawmakers, such as Senate Majority Leader Mitch McConnell (R., Ky.) and House Speaker Paul Ryan (R., Wis.).

The Senate majority and minority leaders are paid $193,000 annually. Two hundred and one CFPB employees outdo Sens. Mitch McConnell and Charles Schumer in pay.

Speaker of the House Paul Ryan of Wisconsin receives $223,000 per year, but that’s less than what 54 CFPB employees are paid.

Another 170 CFPB employees earn more than the secretaries of defense and state, the attorney general, and the director of national intelligence. All Cabinet salaries are capped at $199,700, but not at the bureau. Thirty-nine CFPB employees earn more than the $230,000 paid to Vice President Mike Pence.

The in-depth analysis uncovered that over 449 CFPB employees make over $100,000 and 228 employees make over $200,000. Nearly 200 of these employees make more than their most senior boss, Federal Reserve Chairwoman Janet Yellin, who earns $201,700 a year.”

This information is eye opening needless to say.  I hope that President Trump is dialed in to the CFPB as he looks into Dodd-Frank!

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or


City Ordinance is shot down in Lubbock.

by The CAB Man Texas on February 10, 2017

Some very positive news came out of Lubbock with the City Council voting down the “Payday Loan Ordinance” by a vote 5 to 2.  Credit Access Business owners all across Texas were impressed by Lubbock’s push back of the liberal backed City Ordinance.  Ordinances across Texas have shut down over 40% of Credit Access Businesses in the last several years.  

Rates have increased as CABs have fought to survive the ordinances, access to credit for consumers who need it most has decreased.  The ordinance issue just another reminder that liberals meddling with small businesses and the passage of more regulation ends up hurting the consumer they say they are trying to protect.  

We have quite a lengthy set of rules and regulations that govern Credit Access Businesses in Texas.  And, the Office of Consumer Credit Commissioner does an effective job at overseeing Credit Access Businesses.  Let the conversation about “payday” stay at the Capitol and trust in the statewide legislative process.

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or


Another City Ordinance passes in Texas. (Canyon)

February 10, 2017

Canyon, Texas The City of Canyon, Texas has enacted a “Payday Loan” ordinance. Per News Channel 10 in Amarillo, the City Council of Canyon enacted the ordinance on Monday of this week. Canyon is located about 18 miles south of Amarillo and has a population of just over 13,000.  The City of Amarillo said many of their […]

Read the full article →

Use caution when accepting payoff payments on motor vehicle title loans

February 10, 2017

Review your company policy regarding acceptable methods of payment for motor vehicle title loans in Texas as a Credit Access Business. With tax season upon us, there will be an increase in the number of folks paying off loans, especially motor vehicle title loans as the income tax refunds start to pour in over the […]

Read the full article →

Texas Legislative Session as of this week: (7) bills related to Credit Access Businesses

February 10, 2017

HB 60, Introduced by Romero Jr: Requiring a Credit Access Business to verify the vehicle identification number used to obtain a motor vehicle. HB 197, Introduced by Bernal: Relating to the contracts and other documents issued by a Credit Access Business (requiring to have English & Spanish). Also, to read the contract in its entirety […]

Read the full article →

Credit Access Business rules for 2017 that you need to know!

January 13, 2017

New Technical Rules for 2017 you should be aware of.  Did you know there are new rules related to the application for new licenses, transferring a license, and criminal history of CAB owners?  Much of this was covered during CAB Consulting’s “CAB II” project that many clients and members took advantage of.  *The language for […]

Read the full article →

Legislative Session: (3) bills as of last week, this is the 4th

January 12, 2017

New bill: HB 877, from Chris Turner (Democrat out of Tarrant County, Represents Grand Prairie & portions of Arlington). Caption: Relating to prohibiting certain telemarketing calls by a credit access business. A credit access business or a representative of a credit access business may not make a telemarketing call, as defined by Section 304.002, Business & Commerce […]

Read the full article →

(3) bills already posted ahead of the 85th Texas Legislative Session

January 6, 2017

The 85th Texas Legislative Session starts on Tuesday, January 10, 2017.  At this point, (3) bills have been posted ahead of the session.  See below for information on the bills as well as a few comments. Ramon Romero (D): HB 60 Relating to requiring a credit access business to verify the vehicle identification number used to […]

Read the full article →

Texas Credit Access Businesses are making major contributions to the Texas Financial Education Endowment “TFEE” Fund

January 4, 2017

In an earlier blog the CAB license renewal deadline was addressed as it is coming on January 31st.  It is very much worth mentioning that each year when the CABs across Texas pay the renewal fee of $800 per location, that $200 of that goes to the Texas Financial Education Endowment Fund (  It appears that […]

Read the full article →

Credit Access Business License renewals due by no later than December 31st

December 28, 2016

Credit Access Business (“CAB”) License renewals with the Texas Office of Consumer Credit Commissioner (“OCCC”) are due by no later than December 31st. You absolutely positively cannot miss this deadline. If you do, you will likely lose your license and have to re-apply for a new one. That is not the biggest problem – if you […]

Read the full article →