NEW YORK–Inclusiv has parted with other credit union trade groups in saying it supports the CFPB’s current single director structure.
CUNA, NAFCU and other groups have been calling for a five-member board to oversee the agency, and one lawsuit currently before the Supreme Court argues the single director structure is unconstitutional.
The group, formerly known as the National Federation of CDCUs, has joined with HOPE CU and Self-Help FCU, as well as the National Association of Latino Community Asset Builders, in signing an amici curiae brief filed by the Center for Responsible Lending in support of the CFPB.
Four Broad Arguments
In a statement on its website, CEO Cathie Mahon said the group’s support for the Bureau falls into four broad arguments:
- The CFPB’s regulatory independence allows small financial institutions to thrive by providing a level regulatory playing field
- A CFPB director subject to at-will removal will undermine the Bureau's accountability to the public, and harm small financial institution
- The CFPB’s leadership structure is consistent with the historical design of financial regulation
- Should the Court find removal restrictions to be unconstitutional, the proper course is to sever that section of the Act, not the Act in full
“The more than 10 million Americans served by community development credit unions are vulnerable to predatory lenders, and in many cases the direct competitors of you, our members, are high cost lenders,” Mahon wrote. “The regulatory clarity provided by a central government bureau has been crucial in protecting these consumers from predatory practices. The CFPB also provides valuable front-line counseling and coaching tools for financial institutions with limited resources, and the consumer complaint line managed by the CFPB is another valuable tool for consumers to directly report issues related to predatory practices. Any suspension of these tools would do real harm to the most vulnerable in our society.
Avoiding Undue Burden
“… While we may not always agree with individual rules proposed by the CFPB, we firmly believe that a strong Bureau remains critical to strong, healthy communities,” Mahon continued. “We will continue to advocate forcefully on behalf of our member credit unions with all government agencies, including the CFPB, to ensure that proposed rule changes do not place an undue burden on community development credit unions.”
For a full copy of the amici curiae brief submitted to the Supreme Court, click here.