CFPB nominee McKernan commits to protecting older Americans from financial abuse

In a Senate Banking Committee hearing on Thursday to assess the nominations of four people poised to take on leadership roles in the Trump administration, most of the questions that senators raised were focused on one person.

Jonathan McKernan, who is President Donald Trump’s nominee to succeed Rohit Chopra as director of the Consumer Financial Protection Bureau (CFPB), was grilled by lawmakers seeking to determine what his role will look like at an agency that the White House has severely scaled back since the president assumed office in January.

McKernan signaled several differences with his predecessor, including his philosophy of enforcement and interpretations of orders from current acting director Russell Vought. But one area of agreement he had with a Democratic lawmaker was related to older Americans.

Sen. Catherine Cortez Masto (D-Nev.) asked if McKernan would maintain the CFPB’s office that aims to protect older Americans from financial harm.

“Unfortunately, in Nevada, we rank second in financial fraud, and a high percentage of that fraud are our seniors,” Cortez Masto said. “And I know I have concerns about the CFPB actually closing down the office of financial protection for older Americans.”

She asked if McKernan would commit to “restoring that office” and ensuring that it is “adequately staffed and meeting the legislative, regulatory and reporting requirements of the law so that we can protect older Americans.”

McKernan said it would be his priority, not only due to the unique risks that older Americans face, but because that office is mandated by law.

“The unique risk posed to elderly Americans on the consumer side as they age, they’re more likely to accumulate medical debt that can subject them to aggressive collection tactics,” McKernan said.

“There are, of course, some issues around cognitive decline that can make it harder to resolve their issues,” he added. “And so, it is important that the CFPB continue to monitor those issues, devote enforcement and supervision resources to those ends, and coordinate with the other agencies.”

McKernan said he will honor the mandate for the office to operate, but he also sidestepped a question about potential directives to fire CFPB staffers should one come down from the White House.

“Senator, we’re going to make sure we have that office perform its statutory function,” he said.