Kraninger speaks on constitutionality, payday during semi-annual hearing

CFPB Director Kathy Kraninger – during a House Financial Services Committee hearing to review the bureau Thursday – reinforced her position to no longer defend the bureau’s single-director structure in a lawsuit set to be considered by the Supreme Court in March.

In a letter sent ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler suggested areas where NAFCU believes the structure and operations of the bureau could be enhanced. The association is supportive of legislation to reform the bureau’s governance structure to a bipartisan commission, as well as other reforms pursued by Congress.

Following the Supreme Court’s decision to take up the case, NAFCU President and CEO Dan Berger reiterated the association’s stance “that a commission structure at the CFPB is absolutely essential to ensuring greater transparency and accountability.”

During Thursday’s hearing, Kraninger also discussed issues related to payday lending, indicating that the CFPB’s new rule, expected to be released in April, intends to provide more clarity. NAFCU has previously called on the bureau to extend its safe harbor under the rule to include all future payday alternative loans (PALs) products following the NCUA’s expansion of its PALs program. Members of NAFCU’s Government Affairs team met with the CFPB in December to discuss the bureau’s ongoing rulemaking efforts, including payday lending, and to share credit unions’ perspectives.

 

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