Jun 29 2020
WASHINGTON, D.C. – U.S. Senator Deb Fischer (R-Neb.) released the following statement today after the Supreme Court ruled that the leadership structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional and that its director is removable at the will of the president:
“Today’s decision by the Court has found the CFPB Director’s extreme independence to be unconstitutional. This is something I have long voiced, and now Congress must act. My legislation offers a common-sense solution for reforming the bureau and making its structure resemble other independent agencies. It would replace the single director with a bipartisan, multi-member commission. This would ensure that the bureau does not simply become a political arm of whichever party controls the White House. It would also prevent rash decision-making at the bureau, leading to more certainty for American businesses.”
Today, the Supreme Court ruled in Seila Law v. CFPB that Congress violated the separation of powers when it put a single director in charge of enforcing consumer protection laws. The CFPB had previously announced it would no longer defend its structure after years of lawsuits and calls to reform from stakeholders.
Read more about that case here.
Senator Fischer has long been concerned about the structure of CFPB leadership. Earlier this month, Senator Fischer introduced the Financial Product Safety Commission Act of 2020, and first introduced a version of this legislation in 2013.
The Financial Product Safety Commission Act of 2020 would:
- Replace the Consumer Financial Protection Bureau with a bipartisan Financial Product Safety Commission of 5 individuals (all appointed by the President, confirmed by the Senate).
- Have Commissioners each serve staggered five-year terms, and no more than three commissioners could be from the same political party.
- Create a Chair of the Commission position (to fulfill administrative and other duties), which shall initially be the individual serving as Director of the CFPB on the day before the date of enactment of this legislation. This person would serve as Chair until the President has appointed all 5 members of the Commission and appoints 1 member to serve as the subsequent Chair of the Commission.
Read the full bill here.