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Good Idea? New Bill Proposes Replacing Sole Director of CFPB with Five-Member Commission

March 9th, 2015 · No Comments · Consumer Info

by Kristy Welsh

(Last Updated On: February 26, 2018)

Good Idea? New Bill Proposes Replacing Sole Director of CFPB with Five-Member CommissionFor all the good the Consumer Financial Protection Bureau (CFPB) does, would it do better under a different leadership structure? Numerous representatives in Congress and financial services trade groups seem to think so, thus their support of H.R. 1266, introduced by Rep. Randy Neugebauer (R-Texas), chairman of the Financial Institutions and Consumer Credit Subcommittee and a member of the House Financial Services Committee.

The bill’s goal?

To replace the sole director of the CFPB with a five-member commission, to be named the Financial Product Safety Commission:

  • The President would appoint the five commission members, subject to Senate confirmation
  • Each member would serve a 5-year term
  • No more than three members of the committee could be from the same political party

Who’s Behind H.R. 1266?

“As we approach the five-year anniversary of the Dodd-Frank Act, which created the CFPB, now is a good time to reflect on the bureau’s impact on the American consumer,” says Rep. Randy Neugebauer, who introduced the bill last week.

“Over the last several years, the bureau’s actions and record have proven it can’t function in a sustainable manner. Perhaps, more than any other Washington agency, the CFPB has demonstrated a lack of transparency and a lack of accountability. It has proven it is susceptible to political influence—bringing into question its independence.”

Thus, it is no surprise the bill’s 20 co-sponsors are all Republican representatives. Additionally, financial services trade groups are backing the bill, including the:

  • American Bankers Association
  • American Financial Services Association
  • Consumer Bankers Association
  • Credit Union National Association
  • Financial Services Roundtable
  • Independent Community Bankers of America
  • National Association of Federal Credit Unions
  • S. Chamber of Commerce

What Do You Think?

Currently, the CFPB is run by Director Richard Cordray. What do you think of the job he’s doing? If you’re unsatisfied with his performance, could a new director do the trick or is a complete restructuring of the CFPB really in order?

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