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Elizabeth Warren on her role and the future goals of the Consumer Financial Protection Bureau
President Barack Obama makes his way through the Colonnade with Elizabeth Warren to announce her appointment as assistant to the president. Months later, she took the lead as the head of the new Consumer Financial Protection Bureau.
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TEXT OF INTERVIEW
Steve Chiotakis: Congress passed major financial reform last summer with the intent of regulating banks. One of the big selling points was a consumer financial watchdog.
That watchdog was Harvard Law Professor Elizabeth Warren's idea. Warren was reportedly President Obama's choice to head the bureau. But some members of Congress -- and to be sure, banks -- objected, saying she would come down too hard on financial institutions. So the president instead tapped her to help set up the bureau.
And Professor Warren is with us from Washington this morning. Thanks for being with us.
Elizabeth Warren: It's a pleasure.
Chiotakis: The Dodd-Frank Wall Street Reform and Consumer Protection Act -- boy, it's a long title -- was passed back in the summer. How would you say the implementation's going?
Warren: We're getting started, starting to build all the pieces. It feels a little like building an airplane, you know, lots of complicated parts to it, but lots of possibility if we get it put together the right way.
Chiotakis: What will be the first thing, do you think, consumers will notice as a result of the Consumer Financial Protection Bureau?
Warren: I think they should already be starting to notice. We've identified our priorities as making the price of credit clear, as making the risks associated with the credit clear, and making it easy to compare one product to another. I think what we're starting to see is some number of lenders who are starting to change their products, because I think they realize that's what American families want.
Chiotakis: Would you, do you think, have more authority to set things up had you been named the official, the full-on, head of this bureau?
Warren: There were always two jobs on the table: one was to be nominated to be the head, which would mean hearings and back-and-forth and probably something going on by sometime early next year; or the President said the alternative, there's a job getting started right now to get this agency going. And I said what I'd really like to do is start making it go right now. And I haven't regretted the decision at all.
Chiotakis: What do you tell people who say government shouldn't have its hands in this at all?
Warren: In that case, you end up in a world where people who want to offer good products can't do it because they're having to compete with those who are willing to offer products loaded with tricks and traps. That's a market that doesn't work. And the job of the government, the job of the cop on the beat, is to say, 'Hey look, everybody's gotta be willing to tell upfront what the real cost is.' That's what causes markets to be competitive; that's what causes them to work on behalf of middle-class families.
Chiotakis: Professor Elizabeth Warren, from Washington D.C. Professor, thanks.
Warren: Thank you for having me.
I am a 64 yr old educated retired Professional business woman (36yrs). I bought flooring at Carpet Land and the 6mos interest free account was given to CitiBank. In Jan I made the first $31 payment. In Feb the statement showed the account was now with GE Bank and the next payment due was in about 3 weeks. I then began getting calls 3 to 4 a day from a person I absolutely could not understand saying my account was a 2 months over due. He was rude and did not seem to be knowledgable, overbearing and threatening. He told me I had to immediately pay the $31, I said I had already paid Citigroup, he said there was no record of any payment. I told him the payment went thru and he needed to do some investigating he said not his problem now I needed to pay not only the missing $31 but an additional $31 ( that was not due for 3 weeks) or my credit would be ruined. I used my debit card to make the ???missing $31 and said I would not pay the additional until the due date! At due date I called in to make a telephone payment gave Wells Fargo checking acct info made payment got an electronic confirmation payment went thru. Next month get the statement with a $27 fee for a returned check. Called got another rude unknowledgable CSR they wouldn't couldn't help me. I called again this time the person was better and we walked thru the telephone transaction. I repeated the Wells Fargo Acct # three times to make sure. It was electronically confirmed and confirmed by her that it went thru. This month got a statement another $27 charge. I called and they said check was returned. Got two rude, Reps who could do nothing. They said a number must be off to call Wells Fargo. Called Wells Fargo it was correct numbers and they never ever rec'd any electronic debits from GE. Called GE asked to speak to a Manager, gave me a condesending women probably in her 20's who talked over me said it was returned as bank number was wrong I was not even given a chance to explain, said it was my fault gave wrong numbers and hung on me. I called again got a male manager, again rude I said the problem was coming from their end seems to be a technical problem and it needed to be fixed. I was so upset I said I was going to withdraw money from my Credit Union and pay off the account. He said they would charge another $27 if this number did not go thru. He wasn't going to listen to blame then turned around and said I probably didn't give the right numbers. But when I did give routing numbers he goes Mutual First Federal. Never when I gave Wells Fargo routing numbers did they say WElls Fargo Bank. Called today 4/27 GE has not posted the pay off yet said it could be another 72 hrs. . Asked this rep if I gave him a routing number could he tell what bank. Gave it and he said Wells Fargo so the original routing number did pull up Wells Fargo. They would not let me talk to any at a higher level nor could I give a survey about the customer service. Their documentation on line in not correct and the actual events are not how they happened. Will keep checking as the pay off is $3000.00 and I used my savings to pay this off.
Also enjoyed doing business at Lowe's. Bought and paid off $5000 at Lowes. Needed more cabinets and asked for an additional $3000 as bill was paid off. The Lowes Customer Service people were great but were very perplexed when speaking to GE Bank Credit Dept. Finally put me on the line. GE denied me credit. said I was asking for $10,000. I said no listen to me. Our bill is paid off they couldn't find a record of the 5,000. I said that check went thru 2 mos ago and you had better find it. The young gal was so inexperienced she could not comprehend. I asked for a manager who then apologized said they were looking in their records for the $5000 check pay off...so I waited and waited and waited they finally found it and granted me the $3000. As of this date I will never go to Lowes, Penneys CarpetLand and use a GE Bank card. I will never buy a GE appliance. I have never been treated so rudely and have been so disrespected and devalued as a customer. The customer service reps are not trained well, they are not very smart and the Managers are worse. This is a technical problem on their side but they want nothing to do with fixing it. Not a valued customer who has twice paid off the balance. Should be able to talk to upper management and get resolutions, should have a number you can voice complaints they don't...too big
I have applied to Bank America and Sun Trust for a line of credit or mortgage on our 1995 manufactured home appraised at approximately $100.000.00.
We have excellent credit ratings so feel that is very unfair discrimination.
According to the Banks the Federal Government will not approve or insure loans on manufactured homes or condominiums. Apparently this also applies to a reversed Mtg.
This puts us as well as 281 other residents of our 55 plus park in a very difficult situation. We have no access to borrow funds on our home or have a reverse mtg if needed.
Our park is America Outdoors Condominium Association, 16900 S Tamiami Trail, S Ft Myers FL 33908
Your attention to this matter would be greatly appreciated. I read that you are looking into all complaints with the Banks re Mortgages.
June Thomas
I'm so glad Ms. Warren has agreed to be so closely involved in the nascent stages of this agency. Were I in charge, she'd be the first appointee to it, too, but I'm happy just knowing someone as articulate, thoughtful and genuinely concerned about American economic transparency, as she obviously is, will be instrumental in its creation.
Of course, none of this would have been necessary if Wall Street had been willing to 'play fair' -- and by that, I mean by Glass-Steagall / Paul Volker rules.
It's almost as if this bureau is out to protect us from ourselves. First and foremost, consumers need to take charge of their own protection. Pay down debt and live with your means, it's as fundamental as that. As Americans, we are fortunate to have so many credit options available to us. Rather than take them all away, we should manage them with the responsibility that the privileges of freedom demand.
