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CBA Commends Lawmakers On Legislation To Create CFPB Commission
July 28, 2021
WASHINGTON – CBA President and CEO Richard Hunt today issued the following statement after Congressman Blaine Luetkemeyer (R-MO), Ranking Member of the House Financial Services Subcommittee on Consumer Protection and Financial Institutions, introduced a bill to replace the position of the Director at the Consumer Financial Protection Bureau (CFPB) with a five-member bipartisan commission:
“Thank you to Congressman Luetkemeyer for reintroducing legislation to alter the flawed leadership structure of the CFPB, which holds enormous influence over an industry affecting millions of Americans and is currently led by an unaccountable sole director. Since its inception, revolving leadership at the CFPB has caused significant uncertainty for consumers and the market, as each new administration pursues their own regulatory priorities. CBA has long advocated for replacing the single director with a Senate-confirmed, five-person commission to lead the Bureau in a transparent manner.
“As CBA prepares to testify before the Senate Banking Committee tomorrow on proposals to arbitrarily cap interest rates for much-needed consumer products, it’s important to remember the negative implications the political pendulum can have. Policymakers should be focused on ways to expand access to financial products for all Americans, especially low- and moderate-income families who rely on short-term, small dollar loans, not stifle the development of innovative solutions from banks to meet these needs, as the CFPB proposal on small-dollar lending could do. It’s time to stop the pendulum swing and ensure the agency is balanced, stable and best prepared to uphold the Bureau’s consumer protection mandate for years to come.”
CBA’s Advocacy For Reform At The CFPB
Throughout the course of the last decade, CBA has remained a leading advocate for revamping the flawed leadership structure at the CFPB, including filing an amicus brief with the U.S. Supreme Court in the Seila Law LLC v. Consumer Financial Protection Bureau case in 2019. Ahead of the Court’s ruling, Hunt wrote:
“As demonstrated by other government regulators with multi-member leadership, a bipartisan commission would bring certainty and predictability. A structural change would positively affect the entire bureau and the laws impacting all Americans.”
In 2019, Hunt underscored the need for consistent regulations and a less political CFPB in an American Banker op-ed,and reaffirmed the importance of implementing a bipartisan commission to ensure the Bureau is delivering on its mission of protecting consumers in a letter to the House Financial Services Committee.
Many Americans agree leadership reform at the Bureau is needed. In a 2017 poll conducted by Morning Consult, only 14 percent of respondents said they believed the CFPB leadership structure should be left untouched, and by a 3-1 margin, indicated support for a bipartisan commission over a single director.
CLICK HERE to learn more about what to expect from the Bureau under Director Chopra’s leadership.
CLICK HERE to read Hunt’s comments recognizing the 10th anniversary of the CFPB.
CLICK HERE to learn more about Congressman Luetkemeyer’s legislation to create a bipartisan CFPB commission.