The Consumer Financial Protection Bureau (CFPB) is the focus of a new bill in the House of Representatives that would replace the current CFPB leadership single-director structure with a commission, among other changes, while at the same time instructing employees at their Washington headquarters to collect their personal belongings.
Proposed CFPB Leadership Changes with H.R. 3445
H.R. 3445 would transform the CFPB from an independent bureau within the Federal Reserve into a fully independent agency governed by a bipartisan five-member bipartisan commission.
Under H.R. 3445, the CFPB leadership would consist of five commissioners with staggered five-year terms that would be appointed by the President and confirmed by the Senate. At least two commissioners would be required to have private sector experience in the consumer financial services arena, with at least one being a former state bank supervisor. In the CFPB leadership, no more than three commissioners could be from the same political party, and while one would serve as Chair to be the principal executive officer over the day-to-day operations, the commission would have control of the general policy direction. In the event that CFPB leadership vacancies were to occur, quorum rules would be adapted based on the number of serving commissioners.
H.R. 3445 also includes extensive conforming amendments across financial statues to remove references to a single “Director” and replace those mentions with language that would acknowledge the Bureau’s new structure. The bill regarding CFPB leadership is currently referred to the House Financial Services Committee.
CFPB Firings Proceed
The CFPB leadership has told its Washington-based employees to come collect their personal belongings from their headquarters in a sign that the agency is confident a federal appeals court will undo the pause and allow them to continue with cuts.
CFPB employees that worked out of the agency’s offices at 1700 G Street NW in Washington received an email with instructions on how to collect their personal belongings. Acting CFPB Director Russell Vought locked staff out of the Washington headquarters building in early February and has blocked them from returning since. Vought also had the CFPB’s name removed from the building.
These CFPB leadership changes and firings, along with the CFPB revoking the medical debt advisory opinion, various lawsuits, and legislative action continue to impact the CFPB. Americollect will continue to monitor the impact these changes will have on the early out and bad debt industry.
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