CBA Writes House Leadership on CFPB Case, Need for Bipartisan Commission

October 10, 2019
Nick Simpson

 

CBA Writes House Leadership on CFPB Constitutionality Case, Need for Bipartisan Commission

“The potential of a court ruling that could install a director, removeable at-will, would bring increased confusion … A lack of certainty and long-term consistency in leadership at the Bureau adversely affects consumers, our economy and the financial services industry.”

 

WASHINGTON – The Consumer Bankers Association today wrote Republican and Democratic Leadership of the House of Representatives regarding the possibility of the Supreme Court hearing the Seila Law vs. Consumer Financial Protection Bureau case. The letter outlines why Congress should create a bipartisan, Senate-confirmed commission at the Bureau instead of a sole director, which has raised constitutional concerns.

 

A copy of the letter is available here.

 

CBA’s letter references an Oct. 4, 2019, memo from the House of Representatives to the Supreme Court noting, “where an agency is headed by a single individual, the lines of Executive accountability – and Presidential control – are even more direct than in a multi-member agency” and that “unlike in multi-member agencies, removal of a ‘single officer’ will transform the entire CFPB and the execution of the consumer protection laws it enforces.”

 

CBA President and CEO Richard Hunt noted the position outlined in the House memo is proof why Congress should pass legislation establishing a bipartisan, Senate-confirmed commission at the CFPB instead of a single director.

 

“The CFPB director is currently the chief decisionmaker on rulemakings, enforcement and supervisory actions that affect millions of Americans’ everyday financial lives. A change in this position affects the entire CFPB and the laws that affect all Americans,” Hunt said. “The potential of a court ruling that could install a director, removeable at-will, would bring increased confusion. When regulatory stability is eroded by changing political dynamics, consumers suffer from financial institutions’ inability to rely upon a consistent regulatory environment.

 

“Replacing the sole director model with a bipartisan, Senate confirmed, five-person commission would depoliticize the CFPB while increasing stability, accountability and transparency for all consumers and industry stakeholders. A lack of certainty and long-term consistency in leadership at the Bureau adversely affects consumers, our economy and the financial services industry.”

 

The House Financial Services Committee voted six times and the full House of Representatives four times on bipartisan legislation establishing a commission at the CFPB.

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.