Latest CFPB Leadership Arguments Demonstrate Need for Commission

The latest back-and-forth between Congress and the Consumer Financial Protection Bureau (CFPB) is further proof that a bipartisan, multi-member commission is needed, CUNA believes.

House Democrats this week filed an amicus brief supporting the current structure of the CFPB, an announcement that comes in the wake of CFPB Director Kathy Kraninger’s September letter notifying congressional leader leaders that the bureau will no longer defend its structure against challenges in court.

The Dodd-Frank Act contains a provision stating that the CFPB director can only be fired for “inefficiency, neglect of duty or malfeasance in office.”

CUNA and the state leagues have pushed for the CFPB to replace the current single director leadership structure with a bipartisan, multi-member commission.

The CFPB faced uncertainty when Director Richard Cordray resigned in November 2017 and attempted to name his successor, while President Donald Trump named his own acting director.

The matter was not resolved until July 2018 when Cordray’s appointed successor resigned. Kraninger was nominated as director in June 2018 and was confirmed by the Senate in December 2018.

“CUNA continues to believe as we have all along: a multi-member commission leading the CFPB will ensure transparency and consistency at the CFPB,” said CUNA Chief Advocacy Officer Ryan Donovan. “The CFPB with its rulemakings, supervisory practices and enforcement policies is too important to the American financial system, financial institutions and consumers to be overly dependent on which party is in charge.”