Bipartisan House bill would replace consumer director with panel

Bipartisan House bill would replace consumer director with panel
© Greg Nash

A bipartisan group of House members on Wednesday released a bill that would replace the director of the controversial Consumer Financial Protection Bureau (CFPB) with a five-person commission.

The bill from Reps. Dennis RossDennis Alan RossWave of GOP retirements threatens 2020 comeback Israel should resist Trump's efforts to politicize support Pro-Saudi Arabia think tank abruptly closes in Washington MORE (R-Fla.), Kyrsten Sinema (D-Ariz.), Ann WagnerAnn Louise WagnerOn The Money: Tax, loan documents for Trump properties reportedly showed inconsistencies | Tensions flare as Dems hammer Trump consumer chief | Critics pounce as Facebook crypto project stumbles Tensions flare as Democrats urge consumer bureau to boost penalties Federal aid is reaching storm-damaged communities too late MORE (R-Mo.) and David ScottDavid Albert ScottInside the progressive hunt for vulnerable House Democrats Here are the 95 Democrats who voted to support impeachment Harris hops past Biden in early race for Black Caucus support MORE (D-Ga.) would rename the CFPB and replace its director with a bipartisan panel.

While the bill would easily pass the House, it would likely be filibustered in the Senate by Democrats who have protested changes to the CFPB.

Under the bill, the CFPB would become the Financial Product Safety Commission, directed by a panel appointed by the president. No more than three commissioners could be from the same political party, and the president could remove a member for “inefficiency, neglect of duty, or malfeasance.”

The bill is an attempt to rein in the CFPB director’s sole control over the agency’s extensive authority. Republicans have long insisted that the bureau, opened in 2013, is too powerful, immune from congressional oversight and dependent on the whims of the director.

The CFPB issued a slew of regulations and pursued aggressive actions against financial companies suspected of wrongdoing under former director Richard CordrayRichard Adams CordrayOn The Money: Tax, loan documents for Trump properties reportedly showed inconsistencies | Tensions flare as Dems hammer Trump consumer chief | Critics pounce as Facebook crypto project stumbles Tensions flare as Democrats urge consumer bureau to boost penalties Democrats fear Ohio slipping further away in 2020 MORE. While Democrats praised Cordray for his tough oversight of lenders, Republicans and the financial sector argued the CFPB overstepped its boundaries.

Supporters of the CFPB commission say a five-person panel would provide more stability for the agency and prevent any political ideology from dominating the agenda. Acting CFPB Director Mick MulvaneyJohn (Mick) Michael MulvaneyFlorida GOP lawmaker says he's 'thinking' about impeachment Democrats introduce 'THUG Act' to block funding for G-7 at Trump resort Overnight Defense — Presented by Boeing — Trump insists Turkey wants cease-fire | Fighting continues in Syrian town | Pentagon chief headed to Mideast | Mattis responds to criticism from Trump MORE, a staunch conservative, has enraged liberal former allies of the bureau by scaling back the agency’s operations.

Democrats say installing a CFPB commission would hinder the agency from fulfilling its mission, laid out in the Dodd-Frank Act, to protect consumers from risky financial products and fraud. They insist that Republicans could kneecap the CFPB by refusing to confirm commissioners.

The bill seeks to limit those concerns by allowing the commission to approve all agency actions with just two of five commissioners in place.

Major financial sector lobbying groups that have sought to rein in the bureau endorsed the bill shortly after its release.

The Consumer Bankers Association, National Association of Federally-Insured Credit Unions and Credit Union National Association praised the measure in Wednesday statements.