The Financial Services Roundtable (FSR) has sent a letter to Capitol Hill asking for changes to the Consumer Financial Protection Bureau (CFPB) governance structure while the House Financial Services Committee held a hearing regarding “Legislative Proposals to Improve Transparency and Accountability at the CFPB."
“Over the past three years, FSR has worked with the CFPB on a wide variety of issues. While we have had some differences, we have appreciated Director Cordray’s knowledge and expertise as well as the commitment and hard work of the CFPB’s staff,” said FSR CEO Tim Pawlenty in the letter.
“However, the CFPB’s governance structure remains a concern. The combination of unprecedented authority, a single decision maker and independent funding leaves the CFPB with less accountability and oversight than many other agencies. The CFPB has repeatedly chosen to issue guidance in lieu of following a formal rule making process unlike their counterparts at other federal agencies. Notice and opportunity for public comment are critical in the development of good public policy."
FSR also voiced support in its letter for legislation the Committee is taking up today that would “seek to bring balance to consumers and the agency” that would “reduce the risk of unintended consequences on the market for consumer financial products.”