WASHINGTON–The Supreme Court decision upholding the constitutionality of the funding structure of the CFPB is likely to only embolden an already emboldened regulatory agency, according to one person.
The result of that, according to America’s Credit Unions’ chief advocacy officer, Carrie Hunt, is more regulations that run counter to its stated mission.
Quoting from the CFPB’s mission statement on its website, Hunt noted the agency says, “We aim to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.
“In a market that works, the prices, risks, and terms of the deal are clear upfront so that consumers can understand their options and comparison shop. Companies all play by the same consumer protection rules and compete fairly on providing quality and service.”
After reading that statement, Hunt said, “I challenge you to think about those statements…and to come to a conclusion for yourself as to whether or not the CFPB's several-years-long charge on junk fees fills this mandate.”
Lack of Accountability Cited
Asked by CUToday.info whether she expects the CFPB to become even more aggressive following a Supreme Court decision that many had hoped would go the other way, Hunt said, “Part of the issue with how the CFPB was funded comes down to accountability. It's very challenging and it's hard to argue that the CFPB has sufficient accountability when a lot of what they're doing, both on the enforcement side and by issuing press releases and rules, appears to be counter to their very specific statutory authority and what Congress intended.”
Hunt said that while the trade group supports protecting consumers, the data indicate that all the rulemakings from the CFPB, as well as those that have yet to go into effect, “will have a dramatic impact on credit unions, including whether they will have to increase interest rates. charge additional fees and eliminate certain positive services that consumers enjoy.”
America’s Credit Unions continues to support structural changes to the CFPB, Hunt added.
Additional Litigation Possible
Hunt said that she does not expect the Supreme Court ruling will be an end of litigation filed against the agency, as she expects there to be ongoing lawsuits over whether the CFPB is complying with the Administrative Procedures Act and other federal rules.
In addition, Hunt said she expects to see litigation related to CFPB enforcement actions.
Moreover, in response to a question over whether the ruling will break a logjam of proposals, Hunt said she believes it’s been “full steam ahead” at the CFPB even when the Supreme Court decision was pending.
“We're going to continue to see the CFPB make decisions that are based on their very narrow analysis of data and understanding of consumer markets,” Hunt said. “I think America's Credit Unions will be very active in correcting the record and giving them the real data that counteracts some of the assertions the CFPB has made.”