Wed, Dec 13, 2017
CUNA filed an amicus brief Tuesday supporting the president’s authority to appoint an interim Consumer Financial Protection Bureau (CFPB) director under the Vacancies Reform Act.
Leandra English, a CFPB employee who was appointed as deputy director by former Director Richard Cordray on his last day in the position, is challenging this presidential appointment authority and instead is seeking to create precedent enabling an outgoing CFPB director to select anyone they choose for this position in the U.S. District Court for the District of Columbia case English v. Trump.
“Americans deserve better than the political theater playing out at the CFPB right now,” said Jim Nussle, CUNA president/CEO. “It is important to have a process in place which assures leadership of the CFPB has transparency. We disagree that a non-accountable individual leaving office has Presidential appointment powers with no checks and balances in place."
“As credit unions consider what services they can continue to offer their members, what their costs of compliance may be in the immediate future, and how they want to innovate, it is critical that they have certainty and transparency about the leadership of the CFPB,” Nussle added. “The confusion stemming from this and other litigation surrounding this issue further demonstrate the need for a multi-person commission to lead the CFPB--consumers in need of financial services should not suffer as a result of political grandstanding.”
As noted in its brief, CUNA is concerned that confusion about the CFPB’s leadership creates uncertainty about the status of pending rules, rule effective dates and examination schedules.
It also leaves credit unions uncertain about immediate compliance costs and other actions required by the CFPB, and thereby impacts their operations and their ability to provide financial services on a daily-basis to credit union members.
As an overarching matter, CUNA will continue to advocate for a multi-person, bipartisan commission, which would have avoided this lawsuit and the resulting confusion in the marketplace entirely.