ALTA Supports Bill to Modify CFPB Leadership Structure
June 18, 2020
ALTA joined 16 other trade groups supporting a bill that would replace the Consumer Financial Protection Bureau’s (CFPB) single director structure with a five-person, bipartisan commission.
The Financial Product Safety Commission Act of 2020 (S 3990) was introduced by Sen. Deb Fischer.
In a letter to Sen. Fischer, the organizations said the proposed legislation is the “appropriate and sensible remedy that would bring long term stability to the Bureau. In addition to safeguarding the CFPB from executive and political interference, a Senate confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement by encouraging input from all stakeholders.”
Converting the CFPB into a bipartisan commission would make the agency similar to the Federal Deposit Insurance Corporation, the Federal Reserve Board and the National Credit Union Administration. Three of the five federal banking regulators also are led by commissions. The other two, the CFPB and the Office of the Comptroller of the Currency, are led by single directors.
The U.S. Supreme Court is currently considering a case, Seila Law v. the Consumer Financial Protection Bureau, addressing the bureau’s leadership structure.
In 2017, ALTA commissioned a poll showing that most Americans support converting the CFPB's leadership to a bipartisan commission. Morning Consult found that three in five voters said a commission would lead to consumer protections that are fairer, more accountable, more representative and more transparent. The poll, which found that just 14 percent said the CFPB should keep its current structure, shows that consumers support structural changes at the bureau.
Contact ALTA at 202-296-3671 or communications@alta.org.