Preserve the Consumer Financial Protection Bureau's Independence
Update (12/8): It has been revealed that while a House Rep., Mick Mulvaney received $55,000 from the payday loan industry and $500,000 from the banking and finance industry in campaign donations. He then repeatedly criticized the CFPB’s efforts to regulate the payday loan industry, which offers short-term loans at high interest rates and target the working poor. He sent numerous letters to the CFPB challenging their regulation efforts, often within days of receiving contributions. These actions make clear he is an inappropriate choice to lead the CFPB. In response to the irresponsible banking practices that led to the 2008 recession, Congress passed the Dodd-Frank Act, which established the Consumer Financial Protection Bureau (CFPB). This watchdog agency protects consumers from unfair and predatory lending practices by providing oversight of banks, credit card companies, and other financial entities. On Friday, November 24, Richard Cordray announced his resignation as CFPB director, and appointed the agency's current chief of staff Leandra English as deputy director. Under the Dodd-Frank Act, the CFPB’s deputy director serves as acting director until a new CFPB head is confirmed in the Senate. However, Trump is attempting to bypass Dodd-Frank by appointing vocal CFPB opponent Mick Mulvaney as acting head of the CFPB. Mulvaney has worked to undermine the CFPB both as a member of Congress and in his current role as Office of Management and Budget Director. His appointment as acting CFPB director not only violates Dodd-Frank but also directly threatens the CFPB’s ability to protect consumers from predatory banking and lending practices. Trump must allow Leandra English to continue in her role as acting CFPB director and go through the normal Senate confirmation process to choose a new, permanent CFPB leader. "