CUNA joined more than 20 financial services trade organizations Monday to support legislation to replace the Consumer Financial Protection Bureau’s (CFPB) single director with a bipartisan, five-member commission. The Financial Product Safety Commission Act of 2018 (H.R. 5266) was introduced in March by Reps. Dennis Ross (R-Fla.), David Scott (D-Ga.), Kyrsten Sinema (D-Ariz.) and Ann Wagner (R-Mo.).
“A Senate confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement by encouraging input from all stakeholders. The current single director structure leads to uncertainty as we have witnessed in the recent transition in CFPB leadership from the Obama Administration to the Trump Administration,” the letter reads. “This uncertainty is not only borne by financial institutions providing significant lending services, but it negatively impacts America’s consumers, small businesses, and our local economies.
“Dramatic shifts in the CFPB’s philosophy and approach with each change in presidential administration make it difficult for lenders and small businesses to plan for the future,” it adds.
The organizations also note support of the stability a bipartisan commission among American consumers (who prefer it by a three-to-one margin on battleground states). The support exists in Congress as well, as legislation creating a commission has passed the House Financial Services Committee six times and the House four times—both with bipartisan support.
The letter also highlights that a five-person commission was originally included in the Dodd-Frank Act, which created the CFPB.
CFPB Acting Director Mick Mulvaney is scheduled to testify before Congress this week. CUNA wrote about the need for a bipartisan commission in its letter sent Monday to the House Financial Services Committee, which will hear from Mulvaney Wednesday.