Home > posts > CFPB, Like the IRS Before It, Suffers a “Major Breach” Affecting Over 250,000 Americans
April 20th, 2023 12:43 pm
CFPB, Like the IRS Before It, Suffers a “Major Breach” Affecting Over 250,000 Americans
Posted by Print

For years CFIF has highlighted how the IRS has not only targeted conservative and libertarian organizations for persecution, but also suffered security breaches allowing online extremists to release Americans’ sensitive data to the world.  Now, the equally abusive (and obviously misnamed) Consumer Financial Protection Bureau (CFPB) has suffered a similar breach.  Specifically, the CFPB acknowledges that an employee breached and forwarded the data of over 250,000 Americans in what it labels a “major breach”:

The CFPB said an employee forwarded the personal information of more than a quarter-million consumers to a personal email account, an incident that the bureau described as a ‘major’ breach.  The employee, who was fired when the data breach came to light, sent spreadsheets with names and transaction-specific account numbers related to those 256,000 consumer accounts at a single institution, according to the bureau.”

Separately, and confirming our reference to CFPB abusiveness above, our friend John Berlau along with Stone Washington of the Competitive Enterprise Institute (CEI) write in today’s Wall Street Journal how the CFPB is suing and attempting to censor the owner of nonbank mortgage firm Townstone Financial for discussing out-of-control crime in the Chicago area on a radio show to general audiences.  You can’t make this up:

The Consumer Financial Protection Bureau, a federal bureaucracy with a vast jurisdiction, is testing a novel approach to crime and punishment.  In a lawsuit against Townstone Financial, a small Chicago-area nonbank mortgage firm, the CFPB is signaling that it may attempt to punish anyone who complains about neighborhood crime.

The CFPB accuses Townstone owner Barry Sturner and others affiliated with the company of making ‘statements that would discourage African-American prospective applicants from applying for mortgage loans.’  The suit, filed in 2020, doesn’t provide any concrete examples of  consumers that Townstone has allegedly mistreated.  Rather, the CFPB points to a handful of statements Mr. Sturner and other company officials made over a four-year period on the Townstone Financial Show – a weekly radio program and podcast.”

And here’s the kicker:  Mr. Sturner was simply saying things similar to what soft-on-crime Mayor-Elect Brandon Johnson has himself said about Chicago crime:

Among the statements highlighted in the lawsuit are Mr. Sturner’s descriptions of frequent weekend crime rampages on Chicago’s South Side as the work of ‘hoodlums’ and his claim that police are keeping the city from ‘turning into a real war zone.’  The CFPB also wags its finger at a host’s description of a Chicago suburb as an area in which ‘you drive very fast through’ and ‘you don’t look at anybody or lock on anybody’s eyes.’

The CFPB contends that these statements about majority-black communities would somehow ‘discourage prospective applicants from applying for mortgage loans.’  Yet the Townstone hosts’ candid comments about the crime epidemic in Chicago’s black neighborhoods are remarkably similar to recent statements of Mayor-Elect Brandon Johnson.

Despite Mr. Johnson’s past association with the ‘defund the police’ movement, he spoke openly in his campaign about the effect of crime on Chicago’s neighborhoods.  In a March 16 debate with Paul Vallas, Mr. Johnson described Austin – his own West Side neighborhood – as ‘one of the most violent neighborhoods in the entire city.’  In his April 4 victory address Mr. Johnson said he’d shielded his children ‘from bullets that fly right outside our front door.'”

It all points to a bureaucratic abusiveness that we address this week regarding the vast federal administrative state, and shows the need for courts and elected officials to rein it in.  In the meantime, the CFPB should pay more attention to its own dangerous data breaches, and less what is said on radio shows.

 

 

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