Former State AG to Head Up CFPB Seniors Division

WASHINGTON — Former Minnesota Attorney General Hubert "Skip" Humphrey will head the Office of Older Americans for the Consumer Financial Protection Bureau, the agency said Wednesday.

Humphrey, who was also a state Senator and most recently served on AARP's national board, has spent more than three decades in public services in Minnesota working to protect consumers.

Valerie Jarrett, senior advisor for the Obama administration, lauded Humphrey as the right choice to head the new division, especially as older Americans are confronted with more financial challenges because of the financial crisis.

"We are so excited to have someone with Skip's credentials to be in charge of this most important effort," said Jarrett, on a conference call with reporters. "Older Americans were particularly hard hit by the financial crisis. Today, seniors have to navigate through an increasing number of financial challenges."

The bureau is required under Dodd-Frank to create an office to address the needs of Americans 62 and older to help improve decision making and prevent unfair and deceptive practices targeted at seniors.

Following the financial crisis, many seniors were left at a serious disadvantage with some seeing their home foreclosed upon, being burdened with debt they never anticipated, and even in some cases, forgoing retirement until much later.

Raj Date, who has been running the agency on an acting basis, said a number of teams within the CFPB are dedicated to examining certain populations, like seniors, military service personnel and students to gain "a more complete picture of the financial products these consumers use and where they might be vulnerable."

"It's been a tough few years for older Americans," said Date. "The Office of Older Americans will shine a bright light on financial issues affecting seniors while working to empower, educate and protect them, so they can make smart financial choices."

It's a cause that Humphrey, himself, can relate to.

"For most seniors our retirement savings, if we have any, and our homes, is all we have. If we want to keep a good standard of living, and enjoy our retirement years, we need to hang on to these assets," said Humphrey. "I count myself among those 62 and over when I say 'we.' We've been particularly hard hit the past few years making it hard to pay bills for some, and for others hard to hang on to what they have, and to enjoy their retirement without worrying about whether or not the nest egg they have accumulated will be enough."

The first priority on the list, Humphrey said, will be listening to seniors, who are at the greatest risk for financial abuse. Seniors lose almost $3 billion a year to such abusive practices, he said. Women, especially between the ages of 80 and 89, are twice as likely to experience abuse.

"The office will start by listening to and learning from seniors… That's the first and most important action this office is going to take is we're going to listen to seniors. We're going to bring their concerns back to the consumer bureau to inform our work and develop effective programs to serve these problems."

Separately, Jarrett called on Republicans to stop blocking Richard Cordray as Obama's nominee to head up the CFPB.

"We need the Republicans to drop their opposition to confirming the president's nominee for director of CFPB," said Jarrett. "The CFPB needs a confirmed director before the full protections of the act come into effect."

On Tuesday, the White House released a letter from a bipartisan group of Attorney General's pressing Republicans to confirm Cordray.