CFPB Seeking Applications for Credit Union, Consumer Advisory Groups
Credit union panel responsible for advising agency on consumer financial laws, broader industry trends.
The Consumer Financial Protection Bureau (CFPB) is soliciting applications for membership on its credit union and consumer advisory panels, agency officials revealed late last week.
Applications will be accepted between July 5 and July 24, the CFPB said.
“These advisory committees provide the CFPB with information about emerging trends and practices in the consumer financial marketplace,” the agency stated. “They also allow us to hear directly from small financial institutions.”
What Exactly Does the Credit Union Committee Do?
In its announcement, the CFPB noted that the Credit Union Advisory Council is supposed to advise the agency regarding the impact of consumer financial laws on credit unions with total assets of $10 billion or less. Membership on the council is limited to employees of credit unions with total assets of $10 billion or less that are not affiliated with depository institutions with assets of more than $10 billion.
In describing the role of the credit union council, the bureau explained it was created “to facilitate a similar opportunity for credit unions to share insights regarding operational and technical considerations, credit union business practices, and the unique needs of their customers and community.”
Members of the council will be chosen by CFPB Director Rohit Chopra. The panel has at least eight representatives, with each serving two-year terms.
The CFPB also is seeking applications to join its Consumer Advisory Board. That panel has at least ten members, with six being appointed by the regional Federal Reserve Bank presidents. Further, the agency is accepting applications for both its Community Bank Advisory Council and Academic Research Council.
Additional information about the advisory panels and the application process may be found here.
Committees’ Contentious History
In the past, the advisory groups have been a political football. During the Obama Administration, when Richard Cordray was CFPB director, the groups were active in advising the agency.
When President Trump took office and Mick Mulvaney served as acting agency director, Mulvaney fired members of the committees. When Kathleen Kraninger was eventually confirmed as director, the panels were more active.
However, Kraninger also created a consumer financial law task force. That group issued a two-volume report shortly before President Biden took office with a decidedly pro-business slant.
A subsequent lawsuit filed by consumer advocates challenging how the task force was created led to a settlement, which ultimately saw the Biden Administration’s CFPB agreeing to publish a note at the beginning of the volumes disavowing the report and its recommendations.