While Congress has been consumed this week with the news of the pending retirement of House Speaker Paul Ryan (R-WI) and the much-awaited testimony of Mark Zuckerberg regarding Facebook, there was a window of opportunity for credit unions to push for change in one of the regulatory bodies. The Consumer Financial Protection Bureau (CFPB) Acting Director met with both the House Financial Services Committee and the Senate Banking Committee in Washington, D.C., this week for the semi-annual reports of the CFPB, creating the perfect opportunity to push Congress for change in the structure. In advance of his April 11th testimony in the House and April 12th testimony in the Senate committees, CUNA provided each committee a letter urging Congress to make reforms to the CFPB’s structure, and that previous actions from this agency have inadvertently impacted the ability to serve members.
In advance of the hearings, both CFPB Acting Director Mulvaney as well as Senate Banking member Sen. Elizabeth Warren (D-MA) were at odds with each other publicly on the direction the CFPB should take on the current structure. And, this continued in the hearings itself. However, the letters sent by CUNA on behalf of credit unions agrees with the Acting Director’s point about how the Bureau is “insulated from accountability” with the current structure, regardless of which political party is in power. The current structure – with one powerful director – gives too much authority to one person and does not provide enough oversight and accountability.
Why is this important? Modernizing the CFPB to include a multi-person commission would enhance consumer protection by ensuring that diverse perspectives are included in final rules, and prevent disruptions at credit unions caused by changes in leadership with the CFPB. And consistency with how regulations are applied is a good thing!
