CFPB’s single-director leadership is effective, argue supporters

by Anna Sobrevinas06 Apr 2017

The legal battle between PHH and the Consumer Financial Protection Bureau lingers on, as support on both sides continue to pour in.

Consumer and civil-rights groups, legal scholars and former and current members of the Congress submitted amicus briefs Monday to show their support for the bureau, according to the Center for Responsible Lending (CRL).

Chris Dodd and Barney Frank, authors of the Dodd-Frank Act, which gave birth to the CFPB, were also part of the amici, said the CFPB Monitor.

Past and present members of the Congress insisted upon the constitutionality of the bureau and the importance of having a sole director “to avoid the delay and gridlock to which multi-member agencies are susceptible.”

"Since its establishment, the CFPB has proven to be highly effective in responding to unlawful, abusive practices within the financial services industry,” said CRL President Mike Calhoun. “Its ability to make consumer protection a top priority is due to its leadership structure by a single director who is insulated from undue special interests. Any attempt to weaken the CFPB by disrupting its leadership presents a real threat to consumers across the country. It will revert us back to lax financial regulations and cause another painful economic crisis that we simply cannot afford.”

PHH, however, insisted that the bureau is “unconstitutionally structured” since the director of the agency can only be removed for cause. Last month, seven amicus briefs were filed in support of PHH.


Related stories:
Consumer advocate warns against dismantling federal regulation
PHH to appeals court: The CFPB should be dissolved

COMMENTS

  • by | 4/6/2017 12:13:12 PM

    The CFPB is a complete and utter joke. The acronym "Consumer Financial protection Bureau" is a farce, as they do nothing to help the consumer and only serve as a head hunting agency to levy fines as they see fit. TRID is a complete and utter joke as well, and regrettably, this is what you get when you have absolute morons running the CFPB with little to zero experience in the lending industry.

  • by KAS | 4/6/2017 9:08:32 PM

    Good Grief -

    This is an argument?! ".... Past and present members of the Congress insisted upon the constitutionality of the bureau and the importance of having a sole director “to avoid the delay and gridlock to which multi-member agencies are susceptible."

    Wowies! The only one I know that has no one checking over his shoulder is GOD! So CFPB director is GOD!!!

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