Banking & Credit

Court of Appeals Reinforces Independent Director Architecture for Consumer Agency

Interim Director Moonlights at CFPB, Answers to Trump for Day Job

Washington, D.C. – Today the U.S. Court of Appeals sustained Congress’ choice for the Consumer Financial Protection Bureau’s Director to be removable only for inefficiency, neglect of duty, or malfeasance in office. This architecture for an independent director was implemented in the wake of the great recession to keep the head of the consumer watch dog insulated from political pressure to put financial donors before consumers.

As one of the Consumer advocacy groups on an amicus brief explaining that Congress created the CFPB as an independent agency to ensure that the agency could avoid political pressure and capture by the industries, the Consumer Federation of America (CFA) applauds this decision.

Christopher Peterson, a Senior Fellow at the Consumer Federation of America and the John J Flynn Endowed Professor of Law at the University of Utah, made the following statement:

“The courts have done their part to protect consumers and now the Administration should follow suit.”

“Financial law enforcement shouldn’t be controlled by political masters. President Trump should now nominate a permanent director with a firm and independent commitment to stopping unfair, deceptive, and abusive financial practices.”

“The D.C. Circuit’s decision underscores why it is inappropriate for Mick Mulvaney to simultaneous attempt to serve as acting director of an independent agency while also working within the White House’s Office of Management and Budget.”

“Consumers deserve a director who doesn’t care whether a lender donated to the president’s campaign, but only concerns themselves with whether or not everyday folks are being treated fairly and have a chance to build wealth for their families.”

Contact: Christopher L. Peterson, 202-387-6121 x1020.