NCL condemns Trump’s efforts to undermine CFPB’s ability to protect consumers
Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829
Washington, DC — The National Consumers League (NCL) strongly condemns the Trump Administration’s reported plans to have the Office of Management and Budget (OMB) or the Department of Treasury supervise CFPB operations. Such steps would undermine critical consumer and small business protections, cost hardworking Americans their jobs, and leave millions of consumers more vulnerable to predatory financial practices.
The CFPB was established as an independent agency to protect consumers from deceptive practices in the financial marketplace, and it has been a vital safeguard for American consumers since its creation in 2011. Since that time, the agency has recovered $19.7 billion for consumers.
“We are deeply concerned about the potential consequences of these actions,” said John Breyault, Vice President of Public Policy. “It is crucial that we keep the CFPB strong, independent, and fully operational in order to protect consumers nationwide from financial harm.”
Congress explicitly designed the CFPB to be an independent agency within the Federal Reserve System. Executive actions to place the agency under OMB or Treasury supervision are likely illegal. NCL believes that undermining the CFPB’s independent structure would take the country backward, eroding the essential consumer protections that have helped combat abusive practices in the financial industry, such as payday lending, illegal credit card fees, deceptive loans, and mortgages, and more.
###
About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.