In a letter to Rep. Blaine Luetkemeyer (R-Mo.) today, ABA and several financial trade groups expressed support for H.R. 4773, the Consumer Financial Protection Commission Act, a bill that would transition the governance structure of the Consumer Financial Protection Bureau from having a sole director to a five-person, bipartisan commission. The bill is similar to bipartisan legislation introduced in previous Congresses and has long been supported by the financial services industry.
“A Senate-confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement by encouraging input from all stakeholders. The current single director structure leads to uncertainty as administrations transition,” the groups said. “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 groups added that transitioning to a bipartisan commission structure has wide support, with a Morning Consult poll showing that by a margin of three to one, registered voters in eight states support a bipartisan commission over a sole director. The poll also shows that only 14% or respondents stated they prefer to keep the bureau’s current leadership structure.