The groups support legislation from U.S. Rep. Blaine Luetkemeyer to implement a five-member bipartisan commission at the CFPB.
ACA International has joined nearly 30 industry trade groups, led by the Consumer Bankers Association, in a letter supporting legislation from U.S. Rep. Blaine Luetkmeyer, R-Mo., to transform leadership at the Consumer Financial Protection Bureau into a five-member bipartisan commission.
Luetkemeyer, the ranking member of the Subcommittee on Consumer Protection and Financial Institutions and a member of the House Financial Services Committee, introduced the Consumer Financial Protection Commission Act (H.R. 4773) in July.
ACA has supported similar legislation in the past and continues to support installing bipartisan leadership like the Federal Trade Commission and Federal Communications Commission at the bureau.
Luetkemeyer’s legislation is cosigned by every Republican member of the House Financial Services Committee.
In the letter, the industry trade groups outline the negative impact the current leadership structure at the CFPB has had over the last decade, due largely to the scope and influence of its single director who is subject to the political pendulum of Washington, according to a news release from the CBA.
“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,” the letter states. “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 leadership structure of the CFPB has resulted in ever-changing rules of the road over the last decade, depriving consumers of the high level of protections they deserve, the CBA reports. To ensure the bureau is delivering on its original intent, the letter encourages lawmakers to replace the governance of a single director with a commission, 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% of those polled stating they prefer to keep the [b]ureau’s current leadership structure.”
ACA also issued a letter supporting the legislation to Luetkemeyer this month.
“ACA supports your recently introduced legislation to replace the single director position at the CFPB with a bipartisan commission,” CEO Mark Neeb said in the letter. “The regulatory certainty that stems from a commission rather than a single director benefits the entire financial services marketplace and consumers.”