NIADA Signs Onto Joint Trade Letter For CFPB Leadership Change to Commission Based
NIADA signed onto a letter from the Consumer Banking Association (CBA) addressed to Rep. Blain Luetkemeywer, Ranking Member of the Subcommittee on Consumer Protection and Financial Institutions on the House Financial Services Committee. The letter contains nearly thirty trade groups expressing strong support for H.R. 4773, the Consumer Financial Protection Commission Act, which would convert the governance structure of the Consumer Financial Protection Bureau (CFPB) from one sole director to a five-person, bipartisan commission.
The Letter outlines the CFPB current leadership structure’s negative impact due to the influence of its single director subjection to the political changes of Washington:
“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.”
The current structure of the CFPB has resulted in ever changing rules which deprive consumers of the protections and stability they deserve. The letter encourages lawmakers to replace the governance of a single director with a commission to ensure the Bureau is delivering on its original intent, stating:
“A Senate confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement by encouraging input from all stakeholders. […] Moreover, it is the traditional structure for a financial services regulator as this leadership model provides some moderation and stability regardless of who is in the White House.”
The letter also identifies the strong public support for replacing the single director structure at the CFPB:
“The American people recognize the benefit of having certainty and stability from a bipartisan commission at the CFPB. A Morning Consult poll shows that by a margin of three to one, registered voters in eight states support a bipartisan commission over a sole director, with only 14 percent of those polled stating they prefer to keep the Bureau’s current leadership structure.”