Senate panel votes to advance Trump pick to head consumer watchdog

The Senate seems likely to confirm Kathy Kraninger, but Democrats are continuing to press for details on the precise role she may have played in implementing the immigration policy that separated families. Photo credit: REUTERS

WASHINGTON -- The U.S. Senate Banking Committee voted on Thursday to advance President Donald Trump’s pick to head the federal consumer watchdog despite criticism from Democratic senators.

Kathy Kraninger, a senior official in the Office of Management and Budget, was approved on a 13-12 party-line vote to run the Bureau of Consumer Financial Protection. She would replace Mick Mulvaney, the OMB chief who is also serving as acting director at the agency since November.

Her nomination now advances to the full Senate, which has yet to schedule a confirmation vote.

The Senate seems likely to confirm Kraninger, but Democrats are continuing to press for details on the precise role she may have played in implementing the immigration policy that separated families.

In July, Kraninger told Congress that while she did attend meetings relating to the administration’s “zero tolerance” immigration policy, she did not play a role in setting or developing Trump’s “zero tolerance” immigration policy that separated more than 2,000 children from their parents.

Democratic Senators Sherrod Brown and Elizabeth Warren have said Kraninger has not been sufficiently detailed in her answers. But it was unclear if that will be enough to discourage Republicans from supporting her.

“Kathy Kraninger was part of the Trump Administration’s effort to traumatize kids and rip them away from their families. She should be held accountable and fired — not promoted,” Warren told Reuters in an email on Wednesday.

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Santander to settle consumer watchdog auto-finance claims, report says

WASHINGTON -- European lender Santander has agreed to settle claims by a U.S. consumer watchdog that it misled drivers about the costs of loans and the coverage of related insurance policies, said three people with direct knowledge of the matter.

Santander Consumer USA Holdings Inc., an affiliate of the Spanish banking group, allowed borrowers to make interest-only monthly payments without explaining that doing so would increase the total cost of the loan, said the people familiar with the Bureau of Consumer Financial Protection.

The lender also failed to explain to customers how an insurance policy -- known as guaranteed auto protection -- would not always cover the costs of replacing a car that was destroyed in an accident.

Santander Consumer has agreed to pay a fine and strengthen its consumer protections, said the sources. Reuters could not determine the size of the fine.

A spokeswoman for Santander Consumer declined to comment on any possible settlement but said the lender has in recent months improved its consumer protection controls. A spokesman for the bureau said the agency does not comment on enforcement actions.

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