A former employee serving in the bureaucracy of Elizabeth Warren’s pet-project, the Consumer Financial Protection Bureau (CFPB) is claiming that the CFPB falsified documents in order to justify levying fines on the payday loan industry, and numerous other accusations of serious misconduct.
The ex CFPB examiner from the southeast division, last week, in a letter to the Attorney General Jeff Sessions recalled how senior leaders of the CFPB requested that she tamper with documents, and falsify information during the CFPB’s high profile investigation of the payday loan industry.
She wrote, “During the course of this examination, I was asked to change, remove, and otherwise falsify documents connected with this examination.”
She blamed her seniors saying that even though Ace Cash Express was in complete compliance with the rules set by the CFPB, she was still told to destroy the document with the compliance evidence and to write a made up report including “false and fabricated” findings, to put fine on the company.
“I was specifically told to cite Ace Cash Express for a violation for which I had verified the company was in compliance and to state that Ace Cash Express did not provide, and that the CFPB did not receive, documents that would have satisfied the CFPB’s guidelines, despite having received that information from Ace Cash Express,” Jackson had said.
She further recounted how she rejected the attempts by management to pressure her into falsifying documents, and faced retaliation. Despite her protestations, the managers, “proceeded to modify the report” and then made use of it to “garner” a $10 million settlement with the payday lending company, even though Jackson’s report “did not find significant violations by the lender.”
The CFPB took enforcement action against Ace Cash Express in July 2014. The CFPB said, the company forced the “payday borrowers into a cycle of debt” and further took steps to make the company offer $5 million in refunds and further pay a $5 million fine.
“I encourage you to initiate an investigation into this matter, as well as civil rights violations at the Consumer Financial Protection Bureau,” Jackson wrote in her letter to Sessions. “During my nearly five years at the Bureau, I encountered widespread racism and gender discrimination from management.”
She said that eventually she was taken away from the project as the “incredibly hostile work environment and the retaliation I continued to receive from management at the CFPB due to the Ace Cash Express incident.”
“Ms. Jackson is a dedicated public servant who believes in the mission of the CFPB,” says Brian J. Wise, the president of the U.S. Consumer Coalition. “Unfortunately, her claims are all too familiar to the dedicated employees serving under the direction of CFPB management. We join Ms. Jackson in calling on U.S. Attorney General Jeff Sessions to initiate an investigation into this case as well as the dozens of cases of civil rights abuses we are aware of at the CFPB,” he responded to her whistle blowing effort.