ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION

Republicans Looking At Ways To Get Cordray Ousted From CFPB

Richard Cordray, the Consumer Financial Protection Bureau head, is in the crosshairs of Republican critics who are reportedly looking into any past behavior that could get him ousted from the government agency.

According to a report in the Wall Street Journal, Republicans want Cordray fired from the CFPB when President-elect Donald Trump takes office in January but can't do anything because the Dodd-Frank rule prohibits anyone but the president from getting rid of Cordray. And the only way the president can oust him is for "inefficiency, neglect of duty or malfeasance in office," reported the WSJ. Critics are now looking at his run as the head of the CFPB to see if there is any cause for Trump to oust him.

"President Trump, it's time to say, 'You're fired' to Mr. Cordray," wrote Thaya Brook Knight, associate director of financial regulation studies at the libertarian Cato Institute, according to the WSJ.

The report noted that an issue Cordray's critics are looking at is a previous allegation that women and minority employees were paid differently at the CFPB. Another potential issue is what critics say is his inability to take the right action in the face of the complaints. Commenting on the report, Jen Howard, a CFPB spokeswoman, said in a statement to the WSJ that Cordray "was confirmed by a bipartisan group of 66 senators to serve a term until July 2018 and has no plans to step down."

Cordray declined to comment to the paper. The report noted that while Republicans are now openly calling for the ouster of Cordray, the Trump team has said nothing about the future of the CFPB and Cordray. Rep. Randy Neugebauer (R-TX), a critic of the CFPB, said Trump's transition team would look at Cordray's performance.

"It hasn't been a real smooth ride over there," said Neugebauer, citing the pay discrimination allegations and costs associated with renovating the CFPB's headquarters. PYMNTS.COM

One US agency is under investigation - and it could spell trouble for US fintech

The US Consumer Finance Protection Bureau (CFPB) is an active supporter of fintech and more specific fintech regulation via its Project Catalyst initiative, but its ability to continue in this role is in question as it faces an increasing number of challenges.

The agency has been hit hard by critics of late, and President-elect Trump's transition team is investigating the CFPB's recent performance, according to the Wall Street Journal. At the same time, it remains embroiled in a legal battle over whether its organizational structure is constitutional. If the CFPB is unable to untangle itself from these issues, it could negatively impact its fintech initiatives - and the US fintech industry more broadly.

The new administration wants to see its powers reduced. Measures have already been proposed by prominent Republicans that would reduce the CFPB's independence, which include giving Congress control over the agency's budget, according to the WSJ. Any reduction in autonomy would reduce the CFPB's ability to pursue its own initiatives, including its drive to promote fintech. The loss of the CFPB as a champion for fintech would likely be a major blow to the industry.

The legal battle regarding its leadership continues. Richard Cordray, the head of the CFPB, has proved a somewhat divisive figure, largely due to the agency's aggressive use of new regulation to target financial practices deemed detrimental to consumers under his leadership. In 2016, the CFPB introduced stricter rules for both prepaid cards and payday loans, for example. Dislike of Cordray's methods is likely a major factor in the legal proceedings that the agency's opponents brought against it earlier this year. The proceedings aim to alter the structure of the CFPB to enable the president to remove its chief at will. While judges took the opponents' side in October, the CFPB's appeal of their decision was upheld last week, and the case will now be referred to a larger panel of lawmakers, according to the WSJ. Any change in leadership would likely result in a loss of momentum for non-vital initiatives, including Project Catalyst.

Read the entire article at BUSINESS INSIDER

Americans' Average Income by Age -- How Do You Compare?

Income levels change significantly over a career, but income isn't the only path to financial security in retirement.

Nationwide, the average American under age 65 is earning $31,738 per year, according to the Census Bureau's Current Population Survey. However, average income varies significantly by age, and a more useful comparison for determining your financial preparedness may be your contribution rate to savings accounts. Are you on track for financial security?

Read on to learn Americans' average income by age, and how much average Americans are saving for their golden years.

Because averages can be deceiving, it's useful to consider average (mean) income and median income. As a quick refresher, the median is the exact midpoint of a range of data, so there's an equal likelihood of falling above it or below it.

As the following chart illustrates, our mean and median incomes start off low, build steadily into our 40s, and then begin declining up to and throughout our retirement:

If your income is above these figures, don't pat yourself on the back too quickly, because while the amount you earn has a big influence on retirement preparedness, an equally important figure is the percentage of income that you're saving. After all, a high income that's hardly saved at all won't guarantee financial security in the future.

An individual earning $40,000 per year over a forty-year career who saves 5% of his or her income annually, or $2,000, and earns a hypothetical 6% interest rate, would end up with a nest egg valued at $310,142.98. Meanwhile, someone earning $30,000 who saves 9% of his or her income annually, or $2,700, would end up with a significantly higher $417,857.31 set aside for retirement Read the complete article at THE MOTLEY FOOL

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