The Republican chairman of the House Financial Services Committee is warning Consumer Financial Protection Bureau Director Richard Cordray that his political aims could endanger the agency’s planned regulation of payday lending, amid speculation that Cordray might release the rule in time to return to his home state of Ohio to run for governor.
In a letter dated Monday, Texas Rep. Jeb Hensarling told Cordray that “your personal political ambitions may be informing decisions” that are supposed to be objective and nonpartisan.
If Cordray is rushing the rule out the door to have it finished in time for an Ohio gubernatorial run, it would “undoubtedly” be subject to legal challenge, Hensarling said.
Payday industry and consumer advocacy groups expect that the bureau will soon finalize the rule, which was proposed last year.
Lobbyists also speculate that Cordray will leave the agency shortly afterward to begin running for governor.
Hensarling asked Cordray to respond by Wednesday with an assurance that considerations about his own political ambitions have not helped shape the rule, and to either commit to serving his full term or to submit a date on which he intends to resign.
Cordray has not given any indication that he plans to run for governor. Media reports on his potential candidacy have been based on comments from friends or speculation from others.
Hensarling has long criticized Cordray and opposed his regulatory agenda. This summer, Hensarling threatened to launch contempt proceedings for Cordray over his actions related to a different rule, although he has yet to follow up on that threat.
A bureau representative said the agency is reviewing the letter.
