WASHINGTON—Ahead of the U.S. Supreme Court holding oral arguments in a case brought by Seila Law against the CFPB that challenges the agency’s single-director structure, NAFCU asserted the CFPB’s leadership structure should be reformed to a commission-based model to ensure transparency and accountability.
"The CFPB’s leadership structure has been seeped in political firefight since its inception," said NAFCU President and CEO Dan Berger. "But as the Supreme Court examines the constitutionality of the Bureau’s leadership structure one key issue remains clear: a commission would provide the best path forward for consumers.
"Regardless of how the Supreme Court rules, a commission would allow for more open debate, diversity of thought, and a stable leadership structure that would better serve consumers in the long-run," Berger added. "But until Congress acts to implement this change, NAFCU will continue to work alongside CFPB Director Kathy Kraninger, who has been open to addressing the needs of credit unions and their 120 million members. More so, we will continue to staunchly oppose subjecting credit unions to CFPB authority, and we will continue to push for the Bureau to exempt credit unions from its rulemakings."
In the CFPB lawsuit, the Bureau previously announced it would no longer defend its structure after years of lawsuits and calls to reform it from various stakeholders. This case could also have implications on the structure of the Federal Housing Finance Agency (FHFA), NAFCU noted.