The U.S. District Court of Appeals for the D.C. Circuit’s Tuesday decision that the Consumer Financial Protection Bureau’s (CFPB) structure is unconstitutional reinforces several CUNA concerns about the bureau as well, said CUNA President/CEO Jim Nussle. The Hill reported Tuesday that the court made a 2-1 ruling in the case brought against the bureau by PHH Corp.
“I applaud the ruling from the U.S. Court of Appeals for D.C. Circuit regarding the PHH case against the Consumer Financial Protection Bureau, in that it will establish a meaningful check and balance and bring needed accountability to the director’s role,” Nussle said. “This ruling confirms CUNA’s concern that the structure of the CFPB is flawed and that an unchecked, independent director who answers to no one can’t lead to good public policy. CUNA continues to support a 5-person commission for the CFPB instead of its current structure."
CUNA supports legislation that would change the bureau’s leadership to a 5-person board, rather than a single director, believing that the change would bring additional accountability to credit unions and consumers and reduce ideologically driven regulatory burden.
The court’s decision does not shut down the CFPB, rather it allows the bureau to function by giving the president the power to remove and supervise the director.