October 1, 2015 – September 30, 2016

Annual report of the 

Consumer Advisory 

Board
1 CONSUMER FINANCIAL PROTECTION BUREAU 

Letter to the Director from 

Consumer Advisory Board 

Chair and Vice Chair

Richard Cordray, Director 

Consumer Financial Protection Bureau 

1700 G Street, NW

Washington, D.C. 20552

Dear Director Cordray, 

On behalf of the Consumer Advisory Board (CAB or Board), we are honored to present our 

annual report, which details the activities and progress made during the past fiscal year. 

We think it is important to first note that the Bureau reached a major milestone this year, 

celebrating its fifth anniversary since opening its doors back in July 2011. We are very 

impressed to observe that during that short time period, the Bureau has had an incredible 

impact on the lives of consumers across this great country. You have provided much needed 

relief to harmed consumers, handled nearly one million consumer complaints, and have 

continued to build out a number of consumer tools and resources to help consumers make 

informed choices when shopping for financial services. The financial service market place is 

indeed safer for everyday consumers. We are excited and optimistic about the future of the 

Bureau’s work and look forward to seeing this work continue, particularly strong protections 

implemented that will protect consumers from predatory debt traps and dead ends, among 

other areas of improvement in the marketplace. 

Throughout this year, the CAB has continued to provide the Bureau cross-industry expert advice 

on a variety of consumer financial issues and emerging market trends to support the Bureau’s 

efforts to protect consumers and make consumer financial markets work for everyone. The CAB 

met in person three times this year: twice in Washington, D.C. and once in Little Rock, 

Arkansas. Engaging in the field with diverse groups of consumers and stakeholders, like we did 

at the event in Little Rock, continues to add significant value to our work and we encourage the 

Bureau to continue this kind of engagement. Additionally, this year CAB members also added 
2 CONSUMER FINANCIAL PROTECTION BUREAU 

value to the Bureau’s field work by hosting the Bureau at events across the country; notably, we 

were pleased to support the Bureau’s work by hosting you for town hall meetings in Memphis, 

Tennessee and Oakland, California. 

As in prior years, in addition to our full Board meetings, the CAB continued to work through its 

committees: Card, Payment, and Deposit Markets; Consumer Lending; and Mortgages. 

Through these committees, the CAB has continued to engage meaningfully with each other and 

Bureau staff through in-person meetings and conference calls, providing our collective and 

individual perspectives on the ongoing work of the CFPB. Our committees focused on 

identifying key observations and principles for regulation on a range of topics, such as small 

dollar lending (payday), consumer reporting, alternative data, mortgage origination and 

servicing, faster payment principles, prepaid cards, and innovation in financial technology. The 

innovation topic was a continued item of discussion throughout the year, focusing on key 

themes such as machine learning and access to credit, data aggregation and management of 

consumer information, and access to financial services through use of technology. Additionally, 

as Chair and Vice Chair we worked closely with CAB members to ensure that the focus of CAB 

discussions – committee and full CAB – reflected CAB member interests and issues relevant to 

the Bureau’s agenda. 

In accordance with the Federal Advisory Committee Act (FACA) regulations, this annual report 

provides greater detail about these committee discussions, as the larger CAB’s discussions were 

open to the public and are reflected in summaries posted to consumerfinance.gov. 

Thank you for the opportunity to serve consumers through the CAB. We look forward to the 

coming year and to what next year brings and continuing to fulfill our shared mission of 

protecting consumers in the financial marketplace. 

Sincerely, 

 

William J. Bynum, Chair Maeve Elise Brown, Vice Chair
3 CONSUMER FINANCIAL PROTECTION BUREAU 

Table of contents

Letter to Director from CAB Chair and Vice Chair ................................................1

Table of contents.................................................................................................. 3

1. Executive Summary.............................................................................................................. 4

2. Role of the Consumer Advisory Board ................................................................................. 6

3. Committees............................................................................................................................7

4. Conclusion ......................................................................................................14

Appendix A: ........................................................................................................15

Consumer Advisory Board Biographies ..................................................................... 15

Appendix B: ........................................................................................................21

Consumer Advisory Board written statements ..........................................................21

Appendix C:.............................................................................................................................. 22

CAB Consumer Lending Committee’s summary document.... ................................. 22
4 CONSUMER FINANCIAL PROTECTION BUREAU 

1. Executive summary 

The Consumer Financial Protection Bureau (CFPB or Bureau) is the nation’s first federal agency 

focused solely on consumer financial protection.1The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) created the CFPB to protect consumers of financial 

products and services and to encourage the fair and competitive operation of consumer financial 

markets. The Bureau’s mission is to help consumer finance markets work for all Americans, by 

making rules more effective, by consistently and fairly enforcing those rules, and by empowering 

consumers to take more control over their economic lives.

The CFPB’s Consumer Advisory Board (CAB or Board) is authorized by §1014(a) of the DoddFrank Act. The CAB was chartered and established in September 2012 and its statutory purpose 

is “to advise and consult with the Bureau in the exercise of its functions under the Federal 

consumer financial laws, and to provide information on emerging practices in the consumer 

financial products or services industry, including regional trends, concerns, and other relevant 

information.”2

In fulfillment of its responsibility, as articulated in Section 14 of the CAB Charter and the 

requirements of the Federal Advisory Committee Act (FACA), the CAB is pleased to present its 

Annual Report to the Director. This report primarily summarizes the activities and progress of 

the Board’s committees during the fiscal year beginning October 1, 2015 and ending September 

30, 2016. The discussion portion of the report is divided into sections aligned with the CAB’s 

statutory responsibilities. The report also includes, in Appendix B, separate written statements 

submitted by Board members relating to their service on the Board for the reporting year. 

In this last reporting year, the Consumer Advisory Board:

• Held three meetings – October 2015 in Washington, D.C., February 2016 in Washington, 

D.C., and June 2015 in Little Rock, Arkansas. 

 

1 Previously, seven different federal agencies were responsible for rulemaking, supervision, and enforcement relating 

to consumer financial protection. The agencies which previously administered statutes transferred to the Bureau are 

the Board of Governors of the Federal Reserve System (Federal Reserve, Federal Reserve Board, or Federal Reserve 

Board System), Department of Housing and Urban Development (HUD), Federal Deposit Insurance Corporation 

(FDIC), Federal Trade Commission (FTC), National Credit Union Administration (NCUA), Office of the Comptroller 

of the Currency (OCC), and Office of Thrift Supervision (OTS). 

2 Dodd-Frank Act, Pub. L. No. 111-203, § 1014(a). 
5 CONSUMER FINANCIAL PROTECTION BUREAU 

• Organized three policy committees, which have each met approximately 25 times: 

o Card, Payment, and Deposit Markets Committee;

o Consumer Lending Committee; and

o Mortgages Committee.

• Examined and discussed a variety of topics and issues including:

o Trends and themes in financial services and technology;

o Home Mortgage Disclosure Act Database and rulemaking;

o Know Before You Owe (TILA-RESPA Integrated Disclosures;

o State-specific guides for Managing Someone Else’s Money;

o Alternative data;

o Seen and heard in the housing market;

o CFPB’s strategic outlook

o Financial Well-Being Scale;

o Auto lending education initiative;

o Arbitration; 

o Limited English Proficiency issues;

o FOIA and ethics review;

o EMV and mobile point of sale payments;

o Marketplace lending;

o Debt collection;

o Small dollar lending;

o Access to credit and foreclosure issues;

o Future of loss mitigation;

o Housing Counseling; and 

o Consumer complaints. 

Detailed summaries of the above topics discussed during full Board meetings can be found at 

consumerfinance.gov/advisorygroups.

Members of the Consumer Advisory Board and CFPB staff pose for a group photo with Director Cordray before 

the June 2016 meeting in Little Rock, Arkansas. 
6 CONSUMER FINANCIAL PROTECTION BUREAU 

2. Role of the Consumer 

Advisory Board 

Section 1014(a) of the Dodd-Frank Act states: 

The Director shall establish a Consumer Advisory Board to advise and consult with the Bureau 

in the exercise of its functions under the Federal consumer financial laws, and to provide 

information on emerging practices in the consumer financial products or services industry, 

including regional trends, concerns, and other relevant information.3

The Consumer Advisory Board (CAB) provides feedback on a range of topics, including 

consumer engagement, policy development, and research, from a range of external stakeholders 

including academics, industry participants, community members, and consumer advocates. The 

CAB consults on a variety of cross-cutting topics, reports on meetings, and provides minutes 

and/or summaries of their meetings. Members of the Bureau’s Board serve for limited, specified 

terms. 

 

3 Dodd-Frank Act, Pub. L. No. 111-203, § 1014(a).

Consumer Advisory Board member, Christopher Kukla speaking during the February 2016 CAB meeting in

Washington, D.C. 
7 CONSUMER FINANCIAL PROTECTION BUREAU 

3. Committees 

Based on the success of the previous years’ CAB Committees, the CAB again organized 

committees as authorized by section 13 of its charter, which allows the Board to establish and 

dissolve committees in consultation with the Bureau. As provided in the charter, committees 

report to the Board (not directly to the Bureau) and may include participants who are members 

of the Board and/or staff of the Bureau. Committees may, from time to time, call on individuals 

who are not members of the Board or staff of the Bureau, for the sole purpose of providing 

specific domain expertise and knowledge.

The charter directs that each committee will be led by a committee Chairperson who shall be 

appointed and may be removed by the Chairperson of the Board. Meetings of the Board’s 

committees will be called by the committee Chairperson and conducted via teleconference 

unless the Bureau’s staff and committee Chairperson determine that an in-person meeting is 

necessary.

Consumer Advisory Board Committee Meetings

[This table includes in-person meetings]

Cards, Payments, and 

Deposit Markets Consumer Lending Mortgages

October 21, 2015 October 21, 2015 October 21, 2015

January 26, 2016 December 11, 2015 November 19, 2015

February 24, 2016 January 28, 2016 February 11, 2016

April 5, 2016 February 24, 2016 February 24, 2016

June 8, 2016 March 10, 2016 April 12, 2016

September 6, 2016 April 14, 2016 June 8, 2016

June 8, 2016 July 29, 2016

June 28, 2016 August 2, 2016

September 8, 2016 August 4, 2016

September 13, 2016
8 CONSUMER FINANCIAL PROTECTION BUREAU 

Following the process outlined in the CAB charter, members of like expertise and backgrounds 

are organized into three committees: Card, Payments, and Deposit Markets; Consumer Lending; 

and Mortgages. The schedule of CAB committee meetings follows below.

In January 2016, each committee chair led a process to identify committee priorities, including 

issues about which committee members wished to learn more, to identify and highlight trends, 

and to raise issues. The reporting year’s priorities are outlined below.

• Cards, Payments, and Deposit Markets

The Cards, Payments, and Deposit Markets Committee focused on work relating to the 

role of technology in shaping consumer behavior, consumer complaint handling, and 

EMV and mobile point of sale payments. 

• Consumer Lending

The Consumer Lending Committee focused on work relating to marketplace lending, 

debt collection, and small dollar lending. 

• Mortgages

The Mortgages Committee focused on work relating to the state of the housing market, 

mortgage servicing, access to credit issues, the future of loss mitigation, and the Bureau’s 

Know Before You Owe (TILA-RESPA Integrated Disclosures) work. 

The following summarizes the progress made by each of the committees during the reporting 

year:

Cards, Payments, and Deposit Markets Committee

The Cards, Payments, and Deposit Markets Committee met seven times between October 1, 

2015 and September 30, 2016, three times in person as part of CAB meetings and four times by 

phone. Committee membership changed in October 2015 to account for newly appointed 

members. During this timeframe, the committee discussed important topics in the consumer 

financial marketplace such as overdraft, payment networks, data aggregators, and Fin Tech 

(financial technology).

From October 2015 to January 2016, the committee spent three meetings focused on agenda 

setting as well as receiving a briefing from the Bureau on the Federal Reserve Board’s task force 

on Secure Payments task force. 
9 CONSUMER FINANCIAL PROTECTION BUREAU 

Then, from February 2016 to June 2016, the committeemet via conference call to discuss trends 

in the cards space as well as the CFPB’s Consumer Response complaint database. The 

committee discussed how the public sector could use the database to influence consumer choice. 

During the March 2016 and June 2016, in person meetings, the committee discussed how the 

new EMV enabled credit cards, debit cards, and rewards cards have addressed the issues that 

may exist with fraud. 

Consumer Lending Committee

The Consumer Lending Committee met 9 times between October 1, 2015 and September 30, 

2016, three in person as part of CAB meetings and six times by phone. During this timeframe, 

the committee discussed important topics in the consumer financial marketplace, such as 

marketplace lending, debt collection, and small dollar lending. 

From October 2015 to January 2016, the committee spent three meetings focused primarily on 

marketplace lending. During the first meeting, members received a general overview from the 

Bureau about marketplace lending. Then, during the following two meetings, members had an 

opportunity to share their feedback. Members raised concerns relating to direct mail operations 

by marketplace lenders and hidden fees that could be associated with the product. Additionally, 

members expressed concern regarding potential fair lending risks associated with machine 

learning. While some members expressed a need for clarity regarding federal jurisdiction over 

marketplace lenders, other members noted that they believed the jurisdiction question is 

sufficiently clear at this point in time, as many players are licensed in the states where they lend. 

Then, from February 2016 to April 2016, the committee spent three meetings focused on debt 

collection. During the first meeting, members received a general overview from the Bureau 

about the work the Bureau has undertaken in the debt collection marketplace. During a 

subsequent committee meeting, members heard from two external debt collection experts.4 In 

the third meeting, members had an opportunity ask questions and share their feedback. 

Members expressed appreciation for the Bureau’s focus on this issue and emphasized that the 

 

4 The external experts who presented to the CAB Consumer Lending committee were April Kuchnhoff of the National 

Consumer Law Center (NCLC) and Manuel H. Newburger of Barron & Newburger, P.C. 
10 CONSUMER FINANCIAL PROTECTION BUREAU 

details of the Bureau’s proposal on debt collection will be what is most important. Some 

members shared feedback that the Bureau and other regulators have made it difficult for the 

debt collection industry to communicate with the consumer, and stated that the CFPB’s 

complaint handling portal is a wonderful start to help ensure consumers and companies have a 

safe channel for communication. Members shared on the ground perspectives about consumers 

impacted by fraudulent debt collection practices and encouraged the Bureau to draw clear 

guidelines through its rulemaking process to prevent scammers from taking advantage of any 

gray areas within the rule. 

Between June 2016 and September 2016, the committee met three times and focused on the 

Bureau’s Notice of Proposed Rulemaking (NPRM) on Payday, Vehicle Title, and Certain HighCost Installment Loans. During the first meeting, members were briefed by the Bureau on the 

NPRM, as well as the Request for Information (RFI), and supplemental Bureau research that 

was released with the NPRM. Following that meeting, the committee met to receive a briefing 

from Bureau subject matter experts on the NPRM, and members asked clarifying questions to 

enhance their understanding. In September 2016, the committee had its final meeting for the 

reporting period and further discussed the Bureau’s NPRM.5 Committee members also shared 

their thoughts about the year’s work and ended the meeting with expressions of appreciation for 

the service of those committee members whose CAB terms are expiring.

Mortgages Committee

The Mortgages Committee met 10 times between October 1, 2015 and September 30, 2016, three 

in person as part of CAB meetings and 7 times by phone. During this timeframe, the committee 

discussed various topics in the residential mortgage marketplace such as: Access to Credit, 

Foreclosure Issues, Mortgage Servicing, Know Before You Owe, Housing Counselor Dialogue

and the Future of Loss Mitigation. 

From October 2015 to January 2016, the committee spent two meetings focused primarily on 

Access to Credit, and Foreclosure and Mortgage Servicing issues. During the first meeting, 

 

5 See appendix C for the CAB Consumer Lending committee’s public comments on the CFPB’s proposed rule on

Payday, Vehicle, Title and Certain High-Cost Installment Loans.
11 CONSUMER FINANCIAL PROTECTION BUREAU 

members expressed concern and frustration that consumers are still being treated unfairly and 

sometimes servicers are employing abusive practices during the loss mitigation process. It 

appears that these practices are prevalent in both Judicial and Non-judicial states. There is a 

growing concern that servicers are continuing to report incorrect information using the wrong 

credit report codes. Members were active participants during “Future of Loss Mitigation” 

conversations and provided substantive feedback on what practices should be preserved and 

which practices should be banned or modified in the next round of mortgage servicing rules. 

Members raised access to mortgage credit concerns, noting that financial institutions are not 

lending in the $25,000 to $50,000 dollar loan space, partly due to CFPB’s Qualified Mortgage

(QM) regulatory requirements. Lenders have commented that the restrictions on points and fees 

make these loans unprofitable. Members highlighted that higher loan fees effectively categorize 

these mortgages as High Priced Mortgages. A member stated that these practices are limiting 

consumer’s access to credit, specifically in communities of color with low to moderate income. 

Members also noted there is a growing shortage of housing counselors in the country due to 

limited funding options. Thus housing counselors are not capable of accommodating the

demand for counseling sessions in an orderly and time-efficient manner. This crisis will have a 

negative impact, as consumers will lack the support and coaching from housing professionals 

during times of financial hardship or during first time homebuyer initiatives.

From February 2016 to April 2016, the committee continued to focus on Access to Credit and 

the Future of Loss Mitigation. During the February meeting, members received a general 

overview from the Bureau about the Bureau’s focus on Mortgage and Housing markets in 2016. 

During the subsequent meeting in April, committee members shared on-the-ground 

perspectives of consumers impacted by inconsistent and ineffective loss mitigation practices. 

Members expressed concerns regarding the mortgage servicing landscape after Treasury’s role 

with the Making Home Affordable (MHA) program expires in December 2016, and questioned 

what role the CFPB, Treasury, FHFA and GSEs will play during the transition that will take 

place in 2017. 

Members expressed that federal regulators must ensure that existing loss mitigation standards 

are preserved or improved. There is an ongoing concern that banks will not offer internal loss 

mitigation options and more properties could end up in foreclosure. Members are confident that 
12 CONSUMER FINANCIAL PROTECTION BUREAU 

the Bureau plans to be fully engaged in the future of loss mitigation interactions and the CAB 

would like to continue providing market intelligence to the Bureau and interested stakeholders. 

Members stated that consumers must be educated during this transition process; they should be 

advised of potential loss mitigation scams in the marketplace. 

During Access to Credit interactions, members recommended that the Bureau, at some point, 

should research the impact of recent QM mortgage rules on small dollar mortgage lending and 

access to credit in low to moderate income areas in the nation. Members reminded the Bureau 

that Housing Counseling agencies are struggling due to lack of funding and it is becoming 

extremely hard to help struggling families. Additionally, committee members stated that some

lenders continue to be reluctant to lend or service in the small dollar mortgage space due to 

regulatory restrictions and the high cost of servicing. 

In June 2016 and September 2016, the committee met two times and focused on the Bureau’s 

Future of Loss Mitigation Principles and Know Before You Owe rulemaking. During the first 

meeting, members stated that it is imperative that current loss mitigation standards are 

preserved or improved. Members also highlighted that servicers do not play by the same rules, 

are inconsistent, and in some cases do not abide by the new RESPA servicing rules issued by 

CFPB in 2013. Members expect that round two of servicing rules will address this and other 

prevalent issues, such as: dual tracking, inefficient mortgage servicing transfers, successors in 

interest and requesting the same loan modification documents multiple times during the loss 

mitigation process. 

Some members expressed concerns regarding zombie foreclosures that are occurring in some 

regions of the country. It appears that banks are focusing on foreclosure of properties that are in 

a positive equity position, providing them an opportunity to profit from these sales. Members 

also noted with concern press articles discussing the rise of land contracts targeting low income, 

minority home occupants. The CFPB was encouraged to conduct research to determine the 

prevalence of this practice and the rules applicable to land contracts. 

Members stated that, according to Realty Track, 25% of properties in foreclosure status are at 

least 12 months delinquent. During the committee meeting to discuss Know Before You Owe 

(KBYO), members stated that the Bureau should share KBYO examination feedback with the 
13 CONSUMER FINANCIAL PROTECTION BUREAU 

banking industry. The industry is still uncertain whether lenders are adequately complying with 

KBYO requirements and will welcome proactive feedback from the CFPB. A member mentioned 

that new KBYO disclosures are easier to understand and consumers ask fewer questions during 

the loan closing process. It appears that integrating disclosures has been beneficial for 

consumers. 

In September 2016, the committee met via conference call and reacted to the Bureau’s Future of 

Loss Mitigation Principles. Committee members also reminded the Bureau that more work has 

to be done regarding the lack of funding for housing counselors and highlighted how this 

negatively impacts consumers nationwide. Committee members reflected on the year’s work and 

ended the meeting with expressions of appreciation for the service of those committee members 

with expiring CAB terms.
14 CONSUMER FINANCIAL PROTECTION BUREAU 

4. Conclusion

Now in its fourth year, the Consumer Advisory Board has continued to share vital advice, 

expertise, and technical information with the Bureau and its staff. Board members would like to 

thank the Consumer Financial Protection Bureau for the chance to help further its mission of 

helping to make markets for consumer financial products and services work for all Americans. 

This joint report and attached individual remarks are presented in the spirit of cooperation and 

collaboration. 
15 CONSUMER FINANCIAL PROTECTION BUREAU 

APPENDIX A:

Consumer Advisory Board 

Biographies6

Chairperson Bill Bynum currently serves as CEO of Hope Enterprise Corporation/Hope 

Federal Credit Union in Jackson, MS, a position he has held since 1994. Previously, Mr. 

Bynum held positions as Director of Programs for the NC Rural Economic Development 

Center in Raleigh, NC, and the Associate Director of Self-Help in Durham, NC. From 2002-

2012 he served as chairman of the Treasury Department’s Community Development 

Advisory Board.

Vice Chairperson Maeve Brown currently serves as Executive Director of the Housing 

and Economic Rights Advocates, an organization that she co-founded in 2005. She has over 

25 years as a public interest attorney, in various organizations in Southern and Northern 

California. She has published articles on affordable housing issues and authored a chapter in 

the American Bar Association's Legal Guide to Affordable Housing Development (first 

edition and updated), is bilingual in Spanish and French and conversant in Japanese, Farsi, 

Italian and German.

Seema Agnani has nearly 20 years of experience working in the community development 

and immigrant rights sectors, focused primarily on the challenges of providing housing, 

economic opportunity, and support systems for new immigrants. She is a founder and 

former Executive Director of Chhaya CDC, a member of National CAPACD that works with 

New Yorkers of South Asian origin to advocate for and build economically stable, 

sustainable, and thriving communities. Chhaya CDC reaches thousands of new immigrants 

each year through its organizing, education, and service work.

Sylvia Alvarez is the founder and Executive Director of the Housing & Education Alliance,

a HUD certified housing counseling agency serving over 45,000 Tampa Bay area residents 

 

6 Consumer Advisory Board biographies reflect the membership of the CAB between October 1, 2015 and September 

30, 2016. 
16 CONSUMER FINANCIAL PROTECTION BUREAU 

since 2002. She has over 25 years’ experience in real estate, mortgage lending, affordable 

housing and housing counseling. She co-authored, “The American Nightmare: Strategies for 

Preventing, Surviving and Overcoming Foreclosure.” The book was endorsed by Freddie 

Mac and the National Association of Hispanic Real Estate Professionals, translated into 

Spanish and used by consumers and HUD housing counselors throughout the country. 

Through her leadership her agency has received much recognition and many awards 

including the coveted "NonProfit of the Year" through PBS's national franchise the Be More 

Awards.

Ann Baddour is state director of financial access programs at Texas Appleseed, a public 

interest law center, where she has overseen projects aimed at bringing low- income and 

immigrant consumers into the financial mainstream since 1999. She is actively involved in 

reform of regulations governing payday and auto title lending in Texas to build greater 

consumer protection into these transactions. Her work in the areas of immigrant financial 

education and improving consumer disclosure and protection in remittance transactions has 

been instrumental in laying the groundwork for national oversight of remittances. She has 

presented at economic and asset building conferences across the United States and in Benin, 

Mexico, and the European Union. She has been recognized for her work by the FDIC and the 

El Paso Invest in the American Dream Initiative. Prior to working for Texas Appleseed, she 

was a research analyst with the Texas Legislative Council.

Don Baylor, Jr. currently serves as a Senior Associate at the Urban Institute, where he coleads their State & Local Policy Advisory Group. He previously worked at the Austin-based 

Center for Public Policy Priorities as a lobbyist, policy analyst, and Director of 

OpportunityTexas. Mr. Baylor’s prior positions include Legislative Director for the New 

York, Association of Community Organizations for Reform Now (NY ACORN) and Senior 

Consultant for KPMG Public Sector Consulting Practice in Sacramento, CA.

Steve Carlson is the co-founder and CEO of Ascend Consumer Finance, and currently 

advises a number of fin-tech start-ups. Prior to Ascend, he was at Intuit where he led 

Marketing and Business Development for Mint.com and Quicken. Additionally, Mr. Carlson 

has held senior executive roles at HSBC and Washington Mutual, and has advised a range of 

financial services firms, as the co- founder of Sung Carlson Associates.

Tim Chen is the CEO of NerdWallet, which he co-founded in 2009. Tim sets the strategic 

vision for NerdWallet and is determined to give consumers clarity around all of life's 

financial decisions. Previously, Tim was a hedge fund analyst at Perry Capital investing in 

payment processing firms, credit card networks and technology companies. He also worked 

as an equity research analyst at Credit Suisse First Boston.

Kathleen C. Engel is a Research Professor of Law at Suffolk University in Boston. She is a 

national authority on mortgage finance and regulation, subprime and predatory lending, 

consumer credit, and housing discrimination. Her many publications include the coauthored book, The Subprime Virus: Reckless Credit, Regulatory Failure and Next Steps and 

articles in Harvard Business Law Review, Texas Law Review, and Housing Policy Debate. 

Professor Engel presents her award-winning research in academic, banking, and policy 

forums throughout the country and around the world. Professor Engel also regularly advises 

federal and state agencies on various matters related to financing of credit and served for 

three years on the Consumer Advisory Council of the Federal Reserve Board. 
17 CONSUMER FINANCIAL PROTECTION BUREAU 

Judith L. Fox is a Clinical Professor of Law at the Notre Dame Law School, where she 

teaches and practices consumer law. She joined the faculty in 1997 and teaches courses in 

consumer law and negotiation. Ms. Fox directs the Economic Justice Project, a low income 

clinic specializing in foreclosure and debt collection defense. She is a member of the Indiana 

Mortgage Foreclosure Task Force and co-chairs the AALS Clinical Section’s Standing 

Committee on Lawyering in the Public Interest. Prior to attending law school, she was a 

bank manager and loan officer. Ms. Fox has authored a number of publications and issues 

of foreclosure and debt collection.

Patricia Garcia Duarte has served as President and CEO for Trellis (formerly 

Neighborhood Housing Services of Phoenix) since 2006. Previously, she worked as the 

Arizona Manager for the Community Partnerships Office at JPMorgan Chase/Bank One. 

She has held various housing and economic development responsibilities with Mercy 

Housing South-West; Neighborhood Housing Services of Phoenix; and Chicanos Por La 

Causa, Inc.

Julie Gugin currently serves as the Executive Director of the Minnesota Homeownership 

Center, a position she has held since 2007. She has over 20 years of non-profit leadership 

experience; previous positions include Vice President of Operations for Twin Cities Habitat 

for Humanity and Director of Supportive Housing at the Wilder Foundation. She is a cofounder of the Framework Homeownership, LLC, a non-profit technology start-up company 

for homebuyer education. She co-chaired the statewide Minnesota Foreclosure Partners 

Council and currently serves on the National Industry Standards (for homeownership 

education and counseling) committee.

Neil F. Hall is executive vice president and head of PNC’s Retail Banking. He is responsible 

for leading PNC’s consumer businesses, business banking, brokerage and distribution. Prior 

to being named to his current position, he led the delivery of sales and service to PNC’s retail 

and small business customers, directing branch banking, business banking, community 

development and PNC Investments. Hall joined PNC in 1995 and has held various positions 

within retail banking. Prior to joining PNC, he was executive vice president of Chemical 

Bank New Jersey’s Consumer Banking Group. He began his banking career at Irving Trust 

Company and held several positions in commercial and private banking. Hall is a former 

board member of the Consumer Bankers Association.

Brian D. Hughes currently serves as Senior Vice President and General Manager of 

Deposits for Discover Financial Services, where he is a member of the Management 

Committee. Brian has 20+ years of experience serving consumers in financial services and 

consumer goods and has previously worked as Senior Vice President of Cardmember 

Marketing for Discover, Senior Executive Vice President and CEO of HSBC Card and Retail 

Services, and Principal at the management consulting firm Booz-Allen & Hamilton.

Christopher Kukla is Senior Vice President at the Center for Responsible Lending in 

Durham, North Carolina. The Center is a nonpartisan, non-profit policy and research 

affiliate of Self-Help, a community development lender that has provided more than $6 

billion in financing to homeowners, small businesses, and non-profit organizations 

nationwide. Chris leads CRL’s work on auto lending issues as well as CRL’s policy work in 

North Carolina. He also counsels policymakers and advocates in Washington DC, North 
18 CONSUMER FINANCIAL PROTECTION BUREAU 

Carolina, and in other states on consumer lending legislation and regulation. He graduated 

from Alma College and has a law degree from the University Of Notre Dame Law School. 

Prior to joining CRL, Chris served as a Congressional aide for five years, focused primarily 

on appropriations and financial issues.

Max Levchin is the founder and CEO of Affirm, an online financial services technology 

company. Max was one of the original Co-founders of PayPal where he served as the CTO 

until its acquisition by Ebay in 2002 and is primarily known for his contributions to PayPal's 

anti-fraud efforts as the co-creator of the Gausebeck-Levchin test, one of the first 

commercial implementations of a CAPTCHA. In 2002, he was named to the MIT 

Technology Review TR100 as one of the top 100 innovators in the world under the age of 35, 

as well as Innovator of the Year. He serves on the boards of Yahoo! and Evernote, is an 

active investor in and advisor to several payments, bitcoin, collections, remittance, 

marketplace lending platforms, fraud detection and fraud prevention technology startups.

Brian Longe currently serves as the CEO of the Wolters Kluwer’s Financial & Compliance 

Services division, which specializes in providing solutions and services to help financial 

organizations of all sizes manage risk and maintain compliance with regulations at a local, 

national and global level. Prior to joining Wolters Kluwer in 2005, Brian held numerous 

leadership positions in companies that specialize in developing information technology and 

solutions. Brian also serves on the national board of directors for Operation HOPE, a nonprofit organization dedicated to financial literacy and empowerment.

James (Jim) McCarthy currently serves as President and CEO of Miami Valley Fair 

Housing Center, Inc. in Dayton, OH, a position he has held since 1998. Previously, he was a 

paralegal for Noel W. Vaughn, Attorney at Law. Since 2006, Mr. McCarthy has served as the 

chair for the National Fair Housing Alliance in Washington, DC and is actively involved with 

the Affordable Housing Options Committee of Montgomery County, OH, the Dayton 

Community Reinvestment Institute, and the Dayton Fund for Home Rehabilitation, among 

others. Mr. McCarthy is currently helming the rollout and implementation of the Miami 

Valley Inclusive Community Fund, an innovative program used to reclaim neighborhoods 

blighted by REO neglect, by reinvesting in neighborhoods of color to counteract the 

devastating damage resulting from the foreclosure crisis and its aftermath.

Joann Needleman is the leader of Clark Hill’s Consumer Financial Services Regulatory & 

Compliance group. Joann has extensive litigation experience in state and federal courts, 

successfully defending creditors against claims brought under the Fair Debt Collection 

Practices Act and Fair Credit Reporting Act as well as state statutes. She provides counsel, 

consultation and litigation services to financial institutions, law firms and debt buyers 

throughout the country. Joann is the current President of the Board of Directors of the 

National Association of Retail Collection Attorneys (NARCA).

J. Patrick O’Shaughnessy is currently the President and CEO of Advance America, Inc., 

a provider of consumer financial services with offices in 29 states. Prior to joining Advance 

America, Patrick worked in the investment banking industry. He spent most of his 

investment banking career at Donaldson, Lufkin & Jenrette (DLJ) and with Credit Suisse, 

after its acquisition of DLJ. He also worked for Kidder, Peabody and Thomas Weisel 

Partners. Patrick is the Chairman of the Board of the Community Financial Services 
19 CONSUMER FINANCIAL PROTECTION BUREAU 

Association of America, an industry trade group that advocates for consumer access to 

regulated financial services, and a member of the Board of Trustees of Converse College.

Honorable Annette M. Rizzo (Ret.) served as a Judge for 16 years in the First Judicial 

District, Commonwealth of Pennsylvania. She most recently served in the Trial Division, 

Civil Program for 11 years assigned to Motions Court rotation and the Complex Litigation 

Program with the majority of her time spent in the Civil Major Jury Trial Program where she 

oversaw a vast array of complex civil disputes. Prior to her tenure on the bench, Judge Rizzo 

acquired a wide range of experience tied to the corporate, public, and private sectors 

including her work as litigator for a prominent Mid-Atlantic firm that is the oldest 

continuous law firm in the United States, as Senior Counsel at one of the largest global 

providers of insurance, and serving as an Assistant City Solicitor for the City of Philadelphia.

Paheadra Bratton Robinson currently serves as the Executive Director of the Coalition 

for a Prosperous Mississippi. Paheadra has been addressing civil rights and consumer 

protection issues for more than 10 years. She is currently a member of the Federal Deposit 

Insurance Corporation (FDIC) Alliance of Economic Inclusion, has served as a member of 

the steering committee for the Delta State University Center for Community and Economic 

Development, is a past board member for the Mississippi Community and Financial Access 

Coalition. In addition to private practice, Paheadra has served as legislative counsel in the 

Mississippi House of Representatives.

Ellen Seidman is a Senior Fellow at the Urban Institute and a Visiting Scholar in the 

Community Development Department at the Federal Reserve Bank of San Francisco. She is 

also a Research Fellow at the Filene Research Institute and the 2013-2014 NYU Stern-Citi 

Leadership & Ethics Distinguished Fellow. Ms. Seidman Chairs the Board of Aeris (formerly 

the CDFI Assessment and Ratings Service), and serves on the boards of directors of: the 

Center for Financial Services Innovation, City First Bank of DC, and Coastal Enterprises, 

Inc. Ms. Seidman’s prior positions include: the Executive Vice President for National Policy 

& Partnership Development and for Mission and Strategy for the ShoreBank Corporation; 

Senior Managing Director/National Practice at Shore Bank Advisory Services; Director for 

Financial Services Policy and Senior Research Fellow at the New America Foundation; and 

Director of the Office of Thrift Supervision (OTS) from 1997 to 2001.

Gene Spencer currently serves as the senior vice president for stakeholder engagement, 

policy and research at the Homeownership Preservation Foundation (HPF), in Washington, 

DC, a position he has held since 2010. HPF operates the Homeowner’s Hope Hotline, which 

provides financial education and foreclosure prevention counseling to consumers 

nationwide and is the national call to action for the US government’s Making Home 

Affordable Program. Previously, Mr. Spencer served as a public affairs director at BursonMarsteller and in several positions at Fannie Mae during a 28-year career, including 

executive positions in investor relations and mortgage securitization.

James (Jim) Van Dyke is the CEO of Javelin Strategy & Research, a Greenwich 

Associates LLC company. He is a research-based futurist on digital financial services, 

including emerging capabilities such as mobile, online, payments and fraud mitigation. He 

is also a Board Member of a Bay Area alternative transportation agency which helps 

individuals make a positive impact on climate change and personal health. Jim has held 

numerous professional roles in digital product management, market research on consumer 
20 CONSUMER FINANCIAL PROTECTION BUREAU 

adoption of technology, and strategy formulation. He has worked in electronic commerce 

since 1984, and his comments related to digital financial services strategy now reach over 

forty million people each year around the globe through many public presentations and 

media citations.

Josh Zinner is the Co-Director of New Economy Project, a leading advocacy organization 

that works with community groups to promote racial and economic justice in New York City 

neighborhoods. In this role, he has been instrumental in winning passage of vital financial 

justice legislation and regulations in New York State. Previously, he was the founding 

director of the Foreclosure Prevention Project at South Brooklyn Legal Services, where he 

litigated lending and foreclosure cases in federal and state court, and was an early national 

voice against predatory lending. He was a founding member of New Yorkers for Responsible 

Lending, a prominent statewide financial justice coalition, and has trained numerous 

attorneys and advocates in New York City and State, and around the country. 
21 CONSUMER FINANCIAL PROTECTION BUREAU 

APPENDIX B:

Consumer Advisory Board 

written statements

The following statements were submitted by CAB members per section 9 (c) of 

the CAB Charter: 

October 31, 2016

Honorable Richard Cordray Director

Consumer Financial Protection Bureau 

1700 G Street, NW 

Washington, D.C. 20552 

Dear Director Cordray:

It with great pleasure that I am writing to reflect on my experience during my first year on the 

Consumer Advisory Board (CAB) of the CFPB.

I joined the CAB with high expectations. I had seen from a distance the many careful, balanced and 

effective regulations that the agency had issued in the short time since it came into being. For the 

past year, I have had the privilege of a closer view of the inner workings of the agency and its staff. 

Without exception, every staff member who has presented to the CAB or engaged the CAB in a 

policy discussion has been extremely well-prepared and provided us with comprehensive 

information on a wide array of agency projects, from financial education tools to proposed 

regulations and SBREFA reports. It is a constant learning and thinking experience. The CFPB has 

exceeded my expectations.

After issuing what must be a record number of regulations under the Congressional mandate in 

Dodd-Frank, I sense that the CFPB has a bit more breathing room to delve more deeply into 

financial innovation, particularly the ways in which FinTech products can benefit consumers—

especially those who are unbanked—and the ways in which new financial products can create risks 

for consumers. I anticipate that the collective expertise of financial innovators and consumer 

advocates on the CAB will help the CFPB to identify the challenges and opportunities of FinTech.

The diversity of perspectives and experiences among CAB members adds tremendous value to our 

discussions. Bringing together financial services providers, advocates, academics and Silicon Valley 

inventors to learn and reflect on consumer financial services helps us all understand the very 

complex area of consumer financial services and I hope helps the staff as well.

While I am very pleased with the substance of the CAB meetings and the diligence and smarts of the 

staff, I have some procedural thoughts that I believe might improve the CAB meetings. It would be 

helpful to receive the written materials a bit sooner and to include articles by industry 
representatives, academics, advocates, policy experts, and even the press to help us to more fully 

explore the contours of issues. Similarly, the richest discussions with staff occur when there is 

extensive time for questions and sharing of ideas. If it were possible for staff presentations to be 

shorter (perhaps the content could be in the pre-meeting materials), we would have more 

opportunities for discussion with staff. At the most recent meetings, we moved in that direction, 

which CAB members appreciated. 

Thank you for asking me to serve on the CAB. I hope that I can find ways to contribute as much as I 

learn from the extraordinary CFPB staff. And, thank you for not only attending the CAB meetings, 

but also for being a full participant, sharing your ideas, goals and concerns.

Sincerely,

/s/

Kathleen C. Engel

Research Professor of Law
Affirm,'Inc.

225'Bush'St.,'Suite'1600

San'Francisco,'CA'94104

September'15,'2016

Honorable'Richard'Cordray

Director,'Consumer'Financial'Protection'Bureau'

1700'G'Street,'NW

Washington,'D.C.'20552

Dear'Director'Cordray:'

As'I'approach'the'end'of'my'first'year'on'the'Consumer'Advisory'Board (CAB),'I'am'pleased'to'offer'you'

my'thoughts'about'my time'and'service'to'date.'

As'a'member'of'the'CAB’s'Consumer'Lending'Committee and an observer'of'the'Card,'Payment,'and'

Deposit'Markets'Committee, it'has'been'an'honor'and'privilege'to'offer'my'advice'and'counsel'to'the'

CAB'as'well'as'to'the'CFPB'staff'regarding payments,'credit'cards,'deposit'accounts,'alternative'data,'

payday'loans, and'various'other'consumer'financial'products'and services.

I'am'particularly'pleased'with'the'direction'the'CFPB'is'taking'in'its'rulemaking'process'regarding'lending'

products,'overdrafts, and'debt'collection.'I'encourage'the'CFPB'to'take'into'account'the'following'

thoughts on'debt'collection'and'smallUdollar'lending in'the'interest'of'preventing harm to consumers'

and'misalignment'of industry'incentives.'

Debt!Collection!

As'an'advocate'of'stronger'consumer'protections in'debt'collection,'I'believe'the'proposal'is'an'

important'first'step'in rooting out'the'worst'abuses'in'the'industry.'However,'the'Bureau'must'consider'

possible'unintended'consequences'of'its'restrictions'on'activities'and'tools'for'debt'collectors,'in'

addition'to'clarifying the'following'to'avoid'any'ambiguity:'''

• Consumer'Communication'Channels:'The'Bureau'should'consider'clarifying'that'

communication'via email and text'message'does'not'violate'the'FDCPA'&'TCPA, and that'

emails'are'considered'letters'for'the'purpose'of'collection'communications.'

• Online'Disputes'(eDisputes):'The'Bureau'should'consider'mandating'an'online'option'for

FDCPA'disputes'to'make'the'process easier'and'clearer'for'consumers.'

• Contact'Frequency'Guidelines:'The'Bureau'should'consider'clarifying'that'engaging'with'

technology'(i.e., clicking'a'link or replying'to'an'email)'can'be'considered'an'exception'to'the'
Affirm,'Inc.

225'Bush'St.,'Suite'1600

San'Francisco,'CA'94104

proposed'limits'on'contact'frequency,'since'the'consumer'is'engaged'in'live and'ongoing

conversation.'

• Consumer'Consent:'The'Bureau'should'consider'clarifying'either'that'communication'via

email'and'text'message'does'not'require'extra'consent,'or'that'prior'consent'can'be'

transferred'to'debt'buyers.

Small/Dollar!Lending!Notice!of!Proposed!Rulemaking!(NPRM)

Now'that'the'CFPB'has'proposed an ability'to'repay'(ATR)'requirement'for'payday,'auto'title,'and'similar'

lending'products,'the'issue'of'thirdUparty'data'access'becomes'even'more'important for'the'Bureau'to'

address'as'outlined'in'section'1033'of'DoddUFrank.'ThirdUparty'access'to'consumer'financial'data'is'an'

essential'tool'for'consumers, making services'like'realUtime'income'verification'and personal'financial

management tools possible. It'also increases'access'to'credit for'many'Americans while'at'the'same'time'

promoting a'thriving'industry conducive'to upstart'competition.

Also,'some'ambiguity may exist around'what'constitutes'evidence'sufficient'to'document'improvement'

in'a'consumer’s'financial'capacity.'As'it'stands,'the'proposed'rule'leaves'this'requirement'up'to'lender'

interpretation,'which'may'result'in'varied application.'

Lastly,'I'expect'lenders'will'be looking to'the'Bureau'to'clarify'what'constitutes'a'"reliable'record"'of'

income'payment,'especially'with'respect'to'thirdUparty'data'providers.'That'said,'I'would'encourage'the

CFPB'to'support legislative'proposals that'modernize'other'government'agencies'to'facilitate'the'growth'

of'financial'technology such'as'H.R.!5725,!the!IRS!Data!Verification!Modernization!Act!of!2016, which'

would'allow'the'IRS'to'create'APIs'that'furnish the industry'with efficient'and'accurate'income'

verification'information.

From'my'perspective,'the'CFPB'is'taking'a'measured'and'reasonable'approach'to'tackling'some'of'the'

most'egregious'practices'in'the'finance'industry.'And'while'smart'new'regulations'are'needed'and'

welcome, we'should'be'careful'not'to'impede the'unrealized'innovations'that'have'yet'to'come'out'of

financial'technology—innovations'that'I'believe'will'be'of'immeasurable benefit'to'American'

consumers.''

Thank'you,'again,'for'the'honor'and'privilege'of serving on'the'Consumer'Advisory'Board. I'am very'

much looking'forward'to'continuing'our'work'with'the'CAB'and'CFPB'staff.'

Sincerely,

Max'Levchin

CEO,'Affirm, Inc.'

 www.futurion.digital 

September 16, 2016

Honorable Richard Cordray 

Director, Consumer Financial Protection Bureau

1700 G Street Northwest

Washington, D.C., 20552

Dear Director Cordray, 

I would like to express my appreciation for the privilege of serving on the Consumer Advisory 

Board, for my second year. I treasure the innovation that most naturally seems to bloom from 

our capitalist system, and yet also have seen evidence that the system works best for all when 

good governance is welcomed as part of that system. 

I’ve learned a great deal about how vulnerable populations are victimized by rapidly-changing 

industry ‘product’ areas, such as the Bureau’s recent work on auto title lending. In such areas of 

study, I’ve been very impressed with the Agency’s insight, expertise, and passion.

I’ve been pleased to see increased acceptance of the notion that innovation can be both a boon 

and threat to those at greatest risk of financial exploitation or marginalization. With many 

underserved individuals relying only on mobile access, I believe we have only begun to scratch 

the surface of how mobile can empower well-being. Customer experience and multiple forms 

of research will be vital on the path to pursuing these opportunities. 

My optimism continues for what Consumer Response can accomplish, as does my appreciation 

for the challenge inherent in this relatively new area of work. Just as sunlight is the best 

disinfectant for overall company brands and markets, so too I believe we must push to test the 

limits of how such a big database can potentially revolutionize consumers at the point of 

individual financial decisions. I continue to be interested in exploring how the Consumer 

Sentinel database might directly influence a financial services consumer at the point of 

choosing a product or provider. 

Reflecting on the agency as well as both regulated and non-bank financial services providers, 

my hope is that the future allows all parties to move beyond the wide gulf in ideological 

positions that seem to distract from the vital mission of ensuring greater shared prosperity. 

Financial services is a noble and vital function, yet we somehow need to find a way to move 

beyond today’s unusually-polarized environment. In my third and final year on the board of the 

CFPB, I promise to keep playing whatever role I can. 

With sincere appreciation and optimism, 

Jim Van Dyke, 

CEO and Founder, 

Futurion
CFPB Annual Report - 2016

I have been honored to serve as a member of CFPB’s Consumer Advisory Board (CAB) for the 

second year, and during that year, to chair the mortgages committee. Participating as a member of 

the CAB has been an affirmative experience that enables me to contribute to the financial health of 

Americans. I strongly support the mission of CFPB and its strategic plan.

The CAB relies on the impressive support of CFPB staff to help us understand the issues, how CFPB 

addresses matter that affect consumers and the decision-making processes that drive supervision 

and enforcement actions. CFPB staff is solicitous and considerate in encouraging me, and other 

members, to provide advice and to report on what we experience in our ongoing engagement with 

financial services consumers. My organization provides support to millions of American 

homeowners as the primary call-to-action for the Administration’s Making Home Affordable

program. 

I am also deeply impressed with my fellow CAB members who bring a depth of knowledge and 

experience that strengthens the CFPB’s operations, supervision and analytic processes. Together, 

we work diligently and effectively to make sure the American consumer is treated fairly.

Gene A. Spencer

SVP, Stakeholder Engagement, Policy and Research
22 CONSUMER FINANCIAL PROTECTION BUREAU 

APPENDIX C:

CAB Consumer Lending 

Committee’s public comments 

on the CFPB’s proposed rule

on Payday, Vehicle, Title and 

Certain High-Cost Installment

Loans

The following public document is submitted by the CAB Consumer Lending Committee 

and reflects theirrange of varying views on the CFPB’s proposed rule on Payday, Vehicle, 

Title and Certain High-Cost Installment Loans. 

Comments made by CAB members are their own and do not reflect the views of the 

CFPB or the United States government. 
MEMORANDUM

DOCKET: Federal Register Citation: 81 FR 47863

Document Number: 2016-13490

Docket ID: CFPB-2016-0025; RIN: 3170-AA40

DATE OF EX PARTE September 8, 2016

COMMUNICATION: 

SUBJECT: Summary of Oral Ex Parte Presentation by members of the CFPB’s 

Consumer Advisory Board (CAB) about the CFPB’s proposed rule 

on Payday, Vehicle, Title and Certain High-Cost Installment 

Loans. 

PARTICIPANTS: Members of the CAB:

- Consumer Lending Chairperson: Ann Baddour, Director of the 

Fair Financial Services Project, Texas Appleseed, Austin, TX 

- Steve Carlson, Co-founder and CEO, Ascend Consumer 

Finance, San Francisco, CA

- Neil Hall, Former Head of Retail Banking, The PNC Financial 

Services Group, Inc., Pittsburgh, PA

- Christopher Kukla, Senior Vice President, Center for 

Responsible Lending, Durham, NC

- Max Levchin, Co-Founder and CEO, Affirm, Inc., San 

Francisco, CA

- Joann Needleman, Senior Counsel, Clark Hill PLC, Wayne, PA

- J. Patrick O’Shaughnessy, President and CEO, Advance 

America, Inc., Spartanburg, SC 

- Ellen Seidman, Senior Fellow, Urban Institute, Washington, 

DC

- Kathleen Engel, Research Professor, Suffolk University Law 

School, Boston, MA

- Sylvia Alvarez, Executive Director, Housing and Education 

Alliance, Inc., Tampa, FL

- Brian Hughes, Senior Vice President and Chief Risk Officer, 

Discover Financial Services, Deerfield, IL

CFPB STAFF: Matt Cameron, CFPB

Crystal Dully, CFPB

Yolanda McGill, CFPB

Mark Morelli, CFPB

Laura Udis, CFPB

PREPARED BY: Matt Cameron, CFPB
On Thursday, September 8, 2016, CFPB staff identified above participated in conference call

meeting with members of the Bureau’s Consumer Advisory Board (CAB). During this 

conference call meeting, CAB members addressed the CFPB’s proposed rule on Payday, Vehicle 

Title, and Certain High-Cost Installment Loans.

CAB members were informed that CFPB’s ex parte policy would apply. Summary notes of the 

discussion are attached. Portions of the CAB’s discussion unrelated to the proposed rule on 

payday, vehicle title, and certain high-cost installment loans are not included with this ex parte 

filing.

Attachments:

Attachment 1- CAB Attendance Roster

Attachment 2- Ex Parte CAB Payday, Vehicle Title, and Certain High-Cost Installment Loans

NPRM notes

Attachment 3- CAB Member Joann Needleman Additional Small Dollar Lending Comments 

Attachment 4- CAB Vice Chair Maeve Elise Brown Additional Small Dollar Lending Comments
Attachment 1

EXTERNAL PARTICIPANTS – Attendance Roster

Consumer Advisory Board members 

 Consumer Lending Chairperson: Ann Baddour, Director of the Fair Financial 

Services Project, Texas Appleseed, Austin, TX 

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San Francisco, 

CA

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services Group, 

Inc., Pittsburgh, PA

 Christopher Kukla, Executive Vice President, Center for Responsible Lending, 

Durham, NC

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA

 Joann Needleman, Member, Clark Hill PLC, Wayne, PA 

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC 

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

 Kathleen Engel, Research Professor, Suffolk University Law School, Boston, MA

 Sylvia Alvarez, Executive Director, Housing and Education Alliance, Inc., Tampa, 

FL

 Brian Hughes, Senior Vice President and Chief Risk Officer, Discover Financial 

Services, Deerfield, IL
1

Consumer Advisory Board 

September 8, 2016

Payday, Vehicle Title, and Certain High-Cost Installment Loans NPRM

Discussion Summary

On Thursday, September 8, 2016, 11 members of the Bureau’s Consumer Advisory 

Board (CAB) met via conference call with five members of the Bureau’s staff: Matt 

Cameron, Crystal Dully, Yolanda McGill, Mark Morelli, and Laura Udis. During the

conference call meeting, CAB members provided feedback regarding the CFPB’s 

proposed rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans. 

Feedback shared by CAB members regarding the proposal is summarized below.

Proposed rule – Payday, Vehicle Title, and Certain High-Cost Installment 

Loans

Question #1 - What do you see as the strongest consumer protection 

features of the rule? 

 Chairperson of the CAB Consumer Lending Committee, Ann Baddour,

Director of the Fair Financial Services Project, Texas Appleseed, 

Austin, TX

Ms. Baddour described what she believes are some of the strongest features of the 

proposed rule, which include: the scope of the rule is very important and she is 

pleased to see a broad scope of products included; the Ability to Repay feature 

provides a strong foundation for the rule; and pleased the rule structure 

incorporates an important standard for fair loan markets, that borrower success 

goes hand in hand with lenders’ success.

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall noted that the proposed rule allows the consumer to have a clear 

understanding that they could get into trouble if the consumer wasn’t careful 

with the product. 

 Christopher Kukla, Executive Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla noted that the Ability to Repay standard in the proposed rule is the 

right approach and plays an important feature of the proposed rule. 

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- Ms. Seidman stated that an important feature of the rule is the restriction on 

repeated payment withdrawal attempts. This can make a big difference when 

all of the safeguard features fail. 
2

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy agreed with comments made by CAB members regarding 

the scope of the proposed rule. However, Mr. O’Shaughnessy noted that the 

proposed rule specifically excludes several products, eg. pawn loans, overdraft 

credit, and credit cards which would otherwise meet the definitions in the 

proposed rule, and it fails in creating a level playing field across all small 

dollar products. 

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 

- Mr. Levchin stated that the general movement towards ability to repay is 

really great and the right direction for the Bureau to go. Mr. Levchin 

encouraged the Bureau to provide more prescriptive language in the final rule

on income verification. 

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Mr. Carlson agreed with Mr. Levchin’s comments and stated that more 

prescriptive language regarding ability to repay would be helpful to lenders in 

the final rule. 

Question #2 - What are overarching concerns or challenges with the rule?

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Regarding Ability to Repay, Mr. Carlson commented that as much clarity as 

possible within the final rule is needed. Also that more prescriptive language 

for verification would be helpful. From a consumer’s perspective, Mr. Carlson 

notes that there are segments of consumers that are currently using payday 

type products and, under the proposed rules, will have to change their 

behavior, which will impact them. The Bureau should consider how 

additional financial education or disclosure at time of loan origination can be 

provided to these specific consumers. 

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy stated that he has heard from thousands of consumers on 

this proposed rule and notes that consumers who use these products believe 

that they already assess Ability to Repay. Mr. O’Shaughnessy noted that the 

main objection he hears from consumers is that their ability to access credit 

will be restricted based on their use of a product. 

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 
3

- Mr. Hall wondered where consumers who utilize payday type products will go 

and what will happen when they are unable to access this type of credit going 

forward. Mr. Hall stated that he believes that this will force more consumers 

to use overdraft products. Mr. Hall encouraged the Bureau to consider if this 

is right path for consumers. 

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla stated that the Ability to Repay standard has too many loopholes 

and they should be closed in the final rule. Mr. Kukla noted that there are not 

enough protections within the proposed rule for flipping longer term loans 

and Mr. Kukla encouraged the Bureau to provide language in the final rule 

that states loans made in violation of state lending laws would be a per se

violation of federal UDAAP rules. 

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 

- In regards to the Ability to Repay requirements, Mr. Levchin noted that there 

is no detail within the proposed rule that instructs the lender on how far back 

they should look to verify income and check debt obligations. 

- Mr. Levchin stated that the Bureau should consider supporting legislative 

fixes that would provide the Internal Revenue Service (IRS) with the 

permissions to share income on consumers to lenders. 

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Mr. Carlson mentioned section 1033 of the Dodd-Frank Act and added that 

the Bureau has the ability to weigh in on data access and availability. Mr. 

Carlson further stated that IRS income data access would be of significant 

value for lenders, possibly reducing underwriting costs. 

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- In regards to the Ability to Repay requirements, Ms. Seidman shared a 

concern relating to the length of time it will take the Bureau, largely through 

enforcement actions, to provide all of the clarity the industry needs to 

effectively and consistently implement Ability to Repay. To the extent that the 

Bureau can provide guidance on Ability to Repay directly into the final rule, 

that would be helpful. 

- Additionally, Ms. Seidman stated that another big issue will be how fast the 

information collection system is developed so lenders can track who has 

outstanding payday loans. Ms. Seidman warned that a new collection system 

like this will require significant time to build and test. 

 Chairperson of the CAB Consumer Lending Committee, Ann Baddour, 

Director of the Fair Financial Services Project, Texas Appleseed, 

Austin, TX 
4

- Ms. Baddour noted an issue specific to the state of Texas and stated that the 

proposed rule does not hold service providers directly accountable. Many 

standards in the rule apply to the “lender” and its “affiliates.” All of those 

provisions should also include the “service provider” and the “service 

provider’s affiliates.” Otherwise, those provisions will be easy to evade in 

states where the service provider model prevails. The Bureau needs to work 

through better how it would establish criteria to determine what state law 

provisions would fall below the floor.

 Kathleen Engel, Research Professor, Suffolk University Law School, 

Boston, MA

- Ms. Engel suggested that the CFPB look at efforts of payday lenders to have 

states enact laws permitting add-on products, like accidental death insurance. 

Her concern is that that such products would not qualify as credit-related 

ancillary products that lenders would have to include when calculating the 

cost of credit.

Question #3 - What needs to be strengthened in the ability to repay 

standard?

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC 

- Mr. Kukla noted that there are three main areas where the proposed rule can 

be strengthened; the first is the six loan loophole – which Mr. Kukla believes 

needs to be closed and stated that if a consumer has to take out six of these 

loans there is a clear presumption of unaffordability. Second, Mr. Kukla 

stated that the low default exclusion within the proposed rule should not 

allow lenders to compare themselves to each other for compliance, but rather 

to appropriate lending standards. Third, Mr. Kukla noted that the Bureau 

should provide additional standards on documenting basic living expenses. 

 Chairperson of the CAB Consumer Lending Committee, Ann Baddour,

Director of the Fair Financial Services Project, Texas Appleseed, 

Austin, TX

- Ms. Baddour shared concerns about affordability for longer term loans within 

the proposed rule, and specifically that longer loan terms could cloak the 

unaffordability of a loan. She noted that the National Consumer Law Center 

recommended a one month loan term per $100 borrowed. 

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy stated that the Ability to Repay requirement looks at a 

very short window of time to measure a consumer’s ability to actually repay 

the loan. Mr. O’Shaughnessy continued and noted that the proposed rule fails 
5

to adjust for seasonal workers income fluctuations (eg. a teacher) and 

suggested that a 30 day measurement period is not be long enough to take 

into account income and expense volatility. 

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall noted that the concept of Ability to Repay is a current snapshot of 

what consumers and lenders believe can be repaid on a loan. Mr. Hall 

suggested that the Bureau consider expanding the requirement to look both 

retrospectively and prospectively to determine the consumer’s true Ability to 

Repay. 

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 

- Mr. Levchin reiterated his call for additional clarity in the Ability to Repay 

requirements and suggested the Bureau provide specific examples or a step by 

step illustration within the final rule on how a lender should follow the Ability 

to Repay requirements. 

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Mr. Carlson stated that the standards for Ability to Repay should be different 

based on the term and size of the loan given the associated expense and 

resources required to conduct the assessment. He also noted that, as a lender,

he is more interested to know if the consumer has long term positive cash 

flow. 

Question #4 - What aspects of the ability to repay standard are unclear or 

difficult to follow?

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy stated that basic living expenses are vague and that a 

certain amount or percent of net income is easier to follow. Additionally, Mr. 

O’Shaughnessy notes that the idea of using statistical estimation for housing 

costs using zip code could lead to red lining problems and other unintended 

consequences.

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla commented that basic living expenses will be difficult to calculate 

without standards or stronger guidelines laid out in the final rule.

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 

- Mr. Levchin commented that one question that CFPB might want to consider 

is what constitutes evidence sufficient to document improvement in a
6

consumer's financial capacity and there is some danger that different lenders 

will apply this requirement differently.

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall noted that there needs to be flexibility in the Ability to Repay 

assessment to accommodate emergencies for a consumer such as a funeral. 

Question #5 - What concerns exist with the consumer reporting system?

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- Ms. Seidman shared her concerns about the accuracy and timeliness of the 

information being reported on a consumer’s credit report in today’s market. 

The requirement within the proposed rule assumes that a more robust version 

of what is today a nascent credit reporting system will be up and running in a 

timely manner to comply with the proposed rule. Ms. Seidman noted that 

setting up a system and running it would take significant time to build and 

test. The Bureau should consider an interim solution, such as asking 

borrowers about outstanding loans, to allow for time for a system this 

complex to be established and utilized. 

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy noted that some customers voiced privacy concerns with 

the reporting system and concern that the companies that run these systems 

will sell their information to other vendors. 

 Chairperson of the CAB Consumer Lending Committee, Ann Baddour,

Director of the Fair Financial Services Project, Texas Appleseed, 

Austin, TX

- Ms. Baddour commented that there is a concern with the major credit 

reporting agencies that payday loans on a consumer’s credit report have a 

negative impact on their score. Ms. Baddour recommended that there be 

some kind of guarantee that if a consumer exhibits positive behavior that it

will be reflected positively on this reporting system with no detrimental 

impact on consumer’s score. 

 Brian Hughes, Senior Vice President and Chief Risk Officer, Discover 

Financial Services, Deerfield, IL

- Mr. Hughes noted that he believes there could be a longer delay than 

anticipated by the Bureau for information appearing within the reporting 

system. 

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 
7

- Mr. Levchin noted that his company has started reporting to some of the 

major Credit Reporting Agencies (CRAs). A step in that process was to survey 

his clients to determine how they view their loan being reporting to a CRA. 

Overall, Mr. Levchin notes that the main feedback received from his clients is 

that they see it as a positive development that they will receive credit for 

timely payments on their loans. 

 Joann Needleman, Member , Clark Hill PLC, Wayne, PA 

- Ms. Needleman commented that her concerns about the reporting system are 

how the dispute process will be organized and the process in place to ensure 

accuracy of the information being reported. 

Question #6 - What compliance challenges do you foresee?

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla noted that when standards are vague, it is easier for a lender to 

evade the final rule and harder for lenders who want to follow the final rule. 

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Regarding account aggregation, Mr. Carlson said that the current 

environment is clunky, with inconsistent technology and data cleanliness. 

Mr. Carlson said he envisions a lot of paper-based documentation being 

created to comply with this proposed rule. 

 Max Levchin, Co-Founder and CEO, Affirm, Inc., San Francisco, CA 

- Mr. Levchin agreed with Mr. Carlson’s previous comments. Mr. Levchin 

notes that currently in the market there is movement from financial 

institutions to limit or restrict access to consumer financial data. Mr. Levchin 

encouraged the Bureau to issue a rule under 1033 of Dodd Frank reaffirming a 

consumer’s right to allow 3rd party access to bank account transactional data.

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy commented that whenever there are final rules that are 

not explicit, it makes it harder for the lender to develop a compliance 

management system. 

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- Ms. Seidman encouraged the Bureau to note section 1033 of the Dodd-Frank 

Act in the preamble of the final rule. 
8

Question #7 - What supervision or enforcement challenges do you foresee?

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- Ms. Seidman noted three challenges:

1. Lack of clarity on the necessary living expenses in the Ability to Repay 

standard.

2. Comparability of default rates for longer term loans.

3. Consideration for what would happen in the market if the credit 

reporting systems are not up and running in time. 

 Joann Needleman, Member, Clark Hill PLC, Wayne, PA 

- Ms. Needleman cautioned the Bureau from issuing enforcement actions prior 

to the final rule being released as this can create confusion within industry. 

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall agreed with Ms. Needleman’s previous comment and stated that 

uncertainty that is then clarified via an enforcement action is not the way to 

encourage innovation. 

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla noted that the standards to limit the number of refinances, what 

constitutes basic living expenses, and default rates are too vague, and that the 

Bureau should set appropriate standards rather than allow the industry to 

define them. Mr. Kukla encouraged the Bureau to provide states with efficient 

tools to enforce their own laws that are already on the books. 

Question #8 - How can the rule be improved to encourage low-cost entrants 

in this market space?

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall recommended underwriting standards that are cost efficient and 

easily explained to both consumers and regulators.

 Steve Carlson, Co-founder and CEO, Ascend Consumer Finance, San 

Francisco, CA

- Mr. Carlson stated that the Ability to Repay standard should vary based on 

the size of the loan. Mr. Carlson noted that, dependent on volume and 

breadth of data elements requested, accessing a credit report from a major 

CRA can range anywhere from $0.50 to almost $4. One out of ten consumers 

may actually take the loan after that credit report is pulled. That increases the 

cost to offer the loan and makes it difficult to have low cost entrants in the 

market. 
9

 J. Patrick O’Shaughnessy, President and CEO, Advance America, Inc., 

Spartanburg, SC

- Mr. O’Shaughnessy noted that he didn’t realize it was one of the goals of the 

rule to encourage new entrants into this market. Mr. O’Shaughnessy stated 

that at the state level, there are new entrants into this market every year, 

including fintech firms, banks, and credit unions.. There have been very few 

entrants at a national level because of the variety of state regulations. A 1,500 

page final rule will not encourage more entrants.

 Ellen Seidman, Senior Fellow, Urban Institute, Washington, DC

- Ms. Seidman suggested that the Bureau consult with the National Credit 

Union Administration (NCUA) to avoid putting additional restrictions on 

credit unions. 

 Neil Hall, Former Head of Retail Banking, The PNC Financial Services 

Group, Inc., Pittsburgh, PA 

- Mr. Hall noted that it may be helpful to have prudential regulators comment 

on the proposed rule. Mr. Hall stated that prudential regulators are looking 

for safety and soundness and it might be helpful to have their perspectives 

incorporated into the final rule. 

 Christopher Kukla, Senior Vice President, Center for Responsible 

Lending, Durham, NC

- Mr. Kukla stated that he thinks the proper role for the Bureau is to make sure 

this is a strong rule, close all of the potential loopholes, and then encourage 

others into the market once the final rule is out. 

 Brian Hughes, Senior Vice President and Chief Risk Officer, Discover 

Financial Services, Deerfield, IL

- Mr. Hughes reiterated his call for the Bureau to encourage greater data 

availability, which will lead to greater and more affordable underwriting. 

Additionally, Mr. Hughes noted that allowing the Internal Revenue Service 

(IRS) to provide income to lenders would be a significant help to reduce the 

cost of underwriting. 

 Chairperson of the CAB Consumer Lending Committee, Ann Baddour,

Director of the Fair Financial Services Project, Texas Appleseed, 

Austin, TX

- Ms. Baddour closed the discussion with final remarks and commended the 

Bureau for putting out this proposed rule. Ms. Baddour noted that it is clear a 

lot of research went into putting this together and expects it will have a 

positive impact for consumers.
Consumer Advisory Board 

September 8, 2016

Payday, Vehicle Title, and Certain High-Cost Installment Loans NPRM

Additional Written Comments Submitted by Consumer Advisory Board 

member Joann Needleman, Member, Clark Hill PLC, Wayne, PA 

1. What do you see as the strongest consumer protection features of the rule?

 Standardization of the industry and ability to identify the good from the bad 

players. 

2. What are overarching concerns or challenges with the rule?

Several issues: 

A. It is limiting a significant need in the marketplace, especially for those 

consumers who are having a difficult time accessing credit. Whether we think 

they should have this credit or not, better education and more impactful 

disclosures would be better alternatives then shutting a large majority of 

consumers from the market. 

B. Only the large and well capitalized companies will be able to satisfy and meet the 

requirements for a Registered Information System. That doesn’t necessarily 

mean they will be the best companies. The barrier of entry will be too high and it 

will discourage competition. Furthermore, there has been little thought as to 

how consumers will be able to dispute and correct this reporting. 

3. What needs to be strengthened in the ability to repay standard?

 I believe the cooling off period is too restrictive and does not reward positive 

behavior, namely a consumer paying on time.

4. What aspects of the ability to repay standard are unclear or difficult to follow?

 The underwriting analysis is still too nebulous and does not account for 

consumers who might otherwise provide a validation on the part of consumer 

for major financial expenses that might not be entirely accurate. 

5. What concerns exist with the consumer reporting system? 

 See number #2 above. This is a going to be a complicated process. My concern is 

that in a race to get some system in place it may not be the best system and there 

could be significant consumer harm. 

6. What compliance challenges do you foresee? 

 The compliance challenges will be in the underwriting. While all necessary 

requirements could be met, it doesn’t account for unexpected or unforeseen 

events, like medical expenses or divorce. With the lender be on the hook for 

that? 

7. What supervision or enforcement challenges do you foresee?
 It depends whether the credit reporting aspect is functional and whether 

information about prior loans and performance is able to be accessed. 

8. How can the rule be improved to encourage low-cost entrants in this market space?

 Provide a grace period or a retroactivity period before implementation. Provide a 

carve out for small lenders or lender in rural and extremely underserved areas.