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: https://www.wsj.com/articles/report-on-government-ad-spending-highlights-pentagon-and-cfpb-outlays-1475691906
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 Michael@CreditAccessBusiness.com.