Senate Dems urge Mulvaney to reassemble CFPB advisory board

The Dodd-Frank Act requires the advisory board to meet twice a year

By Francis Monfort

16 Jul 2018

A group of 25 Democratic senators has called on Consumer Financial Protection Bureau Acting Director Mick Mulvaney to immediately reassemble the Consumer Advisory Board (CAB) as part of its statutory obligations under the Dodd-Frank Act.

Mulvaney in June disbanded three boards advising the consumer watchdog about the financial challenges faced by Americans. One of those boards was the CAB, which is required by law to meet twice a year. According to board members, the CFPB cited costs savings as the reason behind the move.

In a letter to Mulvaney, who is also director of the White House Office of Management and Budget, the senators called for a plan detailing how the CFPB will meet with the board and fulfill its statutory obligations.

The senators also urged Mulvaney to allow CAB members to finish their terms. The group was led by Sen. Bob Menendez (D-N.J.), a senior member of Senate Banking Committee.

Under the Dodd-Frank Act, representatives from industry, academia, and consumer advocacy organizations will serve as members of the CAB to advise and inform the CFPB of potential emerging threats to consumers. According to the senators, Mulvaney’s interaction with the board has been limited to one 20-minute phone call.

“By dismissing the CAB, the CFPB is deliberately rejecting statutorily required advice from qualified professionals who are volunteering their services to the American public, with no credible explanation as to why the present CAB members are not capable of fulfilling their responsibilities,” the senators wrote. “Importantly, you took these actions without ever meeting with the advisory board. Since assuming the mantle at the CFPB, you have failed to convene the CAB once. In 2018, you canceled two scheduled meetings with the CAB, in spite of the statutory requirement that the advisory board meet twice a year.”