The Consumer Financial Protection Bureau was the subject of American Bankers Association testimony yesterday before the House Subcommittee on Financial Institutions and Consumer Credit, according to an ABA press release. The ABA addressed measures that would increase accountability at the CFPB.
ABA chief operating officer Michael J. Hunter testified on key pieces of legislation that relate to the Bureau’s role and its exercise of power. In particular, he addressed H.R. 1355, which would move the Bureau under Treasury, where it would be subject to the appropriations process to ensure allocated funds are used effectively. He noted two key questions: how to assure accountability of decisions and appropriate limits on the Bureau’s power, and how to assure the Bureau’s funds are used effectively and disclosed fully.
“The Bureau will play a pivotal role in setting new rules that will affect access and availability of consumer financial products,” Hunter said. “We strongly support an effective mechanism of checks and balances for the Bureau, and we applaud congressional efforts to achieve this goal.”
Hunter also discussed the importance of a commission or board that would increase CFPB accountability, something ABA has long advocated. Last year legislation to create a five-member board for the Bureau was approved by the House.
“We believe such a structural change would provide an effective check and balance,” Hunter said. “As the law is currently written, the Bureau’s director has sole authority to decide the direction and parameters of the consumer financial product market. This vests far too much power in one person to fundamentally alter the financial choices available to customers.”
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