'Who Appointed You Pope?': John Kennedy Tears Into CFPB Director

thank you Mr chairman thank you Mr Chopra for being here you just have a data breach at your agency is that correct and we have an Insider threat that transferred on an unauthorized basis um some emails to their personal email account and you were in charge when this happened of course yes okay and this wasn't an attack from with from outside your agency it it came from inside of your agency is that correct that's right our systems were not penetrated it was not a hack in that way but we had an employee who worked for us who sent those emails you um the the data for 256 000 consumers was breached is that correct yeah we ident we looked through but is my number correct I believe that's right yes but it was not there uh it was not any social security number birth dates anyway it was their data though right uh it was the institutions data but it had their name so that's important and it's a huge problem yeah it is you didn't tell the customers that this happened to the consumers for two months is that correct well we did not have the contact information for them so we had to work with institutions to figure out who to contact and we wanted to work in Partnership but she didn't tell them for too much well is that correct we have start we started the notifications I believe last month but again we did not know the the contact information from them all we had was certain data elements and we followed the cyber security OMB guidance to make sure you can understand can you not walk in members might be a little concerned about you having their information is that correct oh of of course the issue about section 1071. your rule on small business data collection under your proposed rule your your when a when a bank loans Money to a small business woman or a small businessman um the bank you would require the bank to ask that customer first about the the customer's race is that right so uh just to be clear the proposal you reference that has been changed since and is now into the final the the Congressional requirements no it does require just answer my questions okay is your rule going to require Banks to ask the customer about their race so that that is that is in the statute and about their race or is your rule going to require the bank to ask the customer about their ethnicity so just to be clear in the sample form it allows the borrower to self-identify or just answer my question no I'm trying to be no you're not no you're not your Rue would would require a bank to ask the question of a small business person what's your race what's your ethnicity what's your sexual preference are you gay are you a woman now that's that's you can you can bubble wrap this all you want but that's what your rule does now the customer particularly in a small town is going to go whoa what's my sexual preference have to do with the loan and the customer can say I don't want to answer but then the bank has got your requiring the bank to tell you that they wouldn't answer and all of this data is going to go to your agency and we don't have the slightest idea how you're going to use it except you say you're going to publish it well we will not get any names but at all but yeah but you're going to have data sets so that it's if it's possible you you can't tell me it's not possible to have this information known why do you want all this I don't why do you want to know what a small business woman's sexual preference is okay that that's a mischaracteria no it's not yeah it is we know it's National objectives we had to implement it people can self-identify there is no person why do you want to know what a small business woman let's say in a town of 20 000 people going to our local bank to borrow money why do you want to know what her sexual preference is what business is that of yours we we sought to implement what the what bills requirements that of course what a a small businesswoman does in her bedroom a good pointed you Pope again again people are able to self-identify if they wish you're making them we are not making yes you are or not and if they don't answer the bank has got to tell you and we have no idea how you're gonna we're gonna you're gonna use this information well I'm I'm not sure director I don't believe that's enough Senator Kennedy Senator Kenny director Chopra answer one more time and then I turn it to I'm Senator Warren Warner who is am I just like over again yeah you're way over again and I always let you but I'm not going to let you go three minutes over with the same question eight times Senator what if you'd answer just like the Home Mortgage disclosure act there's other ways where there's requirements from congress to collect data in this situation we took a lot of feedback to try and make it less intrusive specifically based on the concern you're raising there will not be individual consumer names sent I will can we can talk further about it but we tried our best to implement the Congressional directive faithfully and and consider all of these issues

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Length: 6min 40sec (400 seconds)

Published: Tue Jun 13 2023