MWCUA statement on H.R. 5266 – The Financial Product Safety Commission Act of 2018

Earlier today, a group of bipartisan Representatives introduced a bill that would replace the Consumer Financial Protection Bureau’s sole director with a bipartisan, five-member commission. Arizona Representative Kyrsten Sinema (D-AZ-09) is one of the bill’s sponsors.

Arizona’s credit unions support this bill, believing that the CFPB’s current structure gives too much authority to a single director without providing appropriate levels of oversight and accountability-leading to unintended consequences.  Congress should change the leadership structure of the Consumer Financial Protection Bureau from a one-person director to a multi-person commission.

“I would like to thank Representative Sinema for her leadership and willingness to address a much needed change in the structure of the CFPB,” said Jay Curtis, President and CEO of First Credit Union (Chandler, AZ). “As recent leadership challenges at the Bureau have shown, there is a need for a change to the structure of the Bureau to ensure the purpose for which it is intended – protecting consumers.”

Ultimately, the CFPB was designed to protect the consumer. This change, would help do just that.

“Representative Sinema has been a consumer champion and has been willing to work with members across the aisle ever since she has been in office,” said Alan Althouse, President and CEO of TruWest Credit Union (Phoenix, AZ). “We commend her and her colleagues for bringing forth this bipartisan bill that will address the leadership issues that have been present at the CFPB since its inception. This new structure will bring both balance and fairness to the Bureau and allow it to perform as it was designed to do.”

About the Mountain West Credit Union Association

The Mountain West Credit Union Association is the regional tri-state trade association representing 127 member credit unions, 3.2 million credit union members and $38 billion in assets throughout Arizona, Colorado and Wyoming. Not-for-profit in nature, credit unions provide low-cost financial services to their members. Founded in 2011, the Mountain West Credit Union Association serves and supports the interests of member credit unions through advocacy, community outreach, education and training, public affairs, regulatory and compliance services and strategic partnerships. The Mountain West Credit Union Association is affiliated with Credit Union National Association (CUNA), World Council of Credit Unions (WOCCU) and CUNA Mutual Group. Follow us on twitter at twitter.com/mwcua or on Facebook at facebook.com/mwcua. To learn more about credit unions visit AsmarterChoice.org.

 

Below is the official release on the bill:

Rep. Ross Introduces Bipartisan Bill to Restructure the CFPB

WASHINGTON, D.C. – U.S. Rep. Dennis A. Ross (R-FL-15), Senior Deputy Majority Whip, joined with U.S. Reps. Kyrsten Sinema (D-AZ-09), Ann Wagner (R-MO-02), and David Scott (D-GA-13) to introduce H.R. 5266, the Financial Product Safety Commission Act of 2018, a bill to replace the Consumer Financial Protection Bureau’s sole director with a bipartisan, five-member commission.

“The idea that civil servants in positions of immense power should be isolated from debate and protected from dissent is antithetical to our nation’s founding principles,” said Congressman Ross. “Our system of governance is rooted in the belief that robust competition for ideas and vigorous engagement between those with whom we disagree, is the best way to make laws and regulations and to serve the American people. As one of the most powerful agencies ever created, the CFPB should not be exempt from this principle of good governance, and, with this legislation, we can ensure that it no longer will be – regardless of who holds the White House.”

“We need a watchdog that looks out for everyday Arizonans and puts consumer protection first,” said Congresswoman Sinema. “That’s why I’ve sponsored this bill under both Democratic and Republican presidents. CFPB’s ability to carry out its mission should not be subjected to the whims of any one person or political party. Our bill requires qualified people in both parties to work together to get things done – that’s how we deliver results for Arizona that stand the test of time.”

“As Chairman of the Oversight and Investigations Subcommittee, I saw firsthand the abuses and lack of accountability at the CFPB under the leadership of Former Director Richard Cordray,” said Congresswoman Ann Wagner.  “The Financial Product Safety Commission Act of 2018 provides a layer of stability and transparency for an agency that has lacked both.  I commend my good friend from Florida, Dennis Ross for his leadership and support on this issue.”

The Consumer Financial Protection Bureau (CFPB) was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to provide oversight of the financial services industry. The agency is currently run by a sole director who may be removed by the President only for cause. Under the Financial Product Safety Commission Act of 2018, the President would appoint, subject to Senate confirmation, five individuals who have strong competencies and experiences in consumer financial products and services to serve on the Commission for staggered 5 year terms.

 

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