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Banking Associations Support Reforming CFPB

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The heads of four banking industry associations recently told Congress in a letter that the Consumer Financial Protection Bureau should be led by a commission rather than a single individual, according to the RV Dealers Association.

The letter, signed by presidents of the Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federal Credit Unions, said that a bipartisan commission of appointed officials – similar to the one that governs the Federal Communications Commission –would boost the Bureau’s accountability. Such an approach would “provide a balanced and deliberative approach to supervision, regulation, and enforcement over financial institutions that is more in keeping with other financial regulators,” according to RVDA.

A federal appeals court ruled in October that the CFPB’s structure is unconstitutional because it gives too much power to a single individual, who may be removed only with cause. 

RVDA and its allies have long contended that the CFPB’s actions have been conducted with a lack of transparency and accountability, particularly concerning the flawed guidance it issued – without prior notice, public comment, or hearings – on vehicle finance. RVDA will be closely monitoring any developments under the new administration.

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