Mulvaney Fires All Members of 3 CFPB Advisory Boards

On Wednesday, Acting Director of the Consumer Financial Protection Bureau Mick Mulvaney fired all 25 members of three of the organization’s advisory boards and councils, telling them they could not re-apply to those positions.

Why it matters

• The move came just two days after multiple consumer advocates had spoken out publicly over their concerns that Mulvaney was sidelining the board and shifting the focus of the bureau away from protecting consumers.
• Mulvaney is working on a broader overhaul of the agency, which was conceived to stamp out abusive lending after the 2007-2009 financial crisis, arguing it has grown too powerful and has overstepped the mandate Congress gave it.
• The advisory board was designed to help consumer groups work with the CFPB to identify problems facing Americans who are treated unfairly by financial firms. The fired board members — who hail from academia, consumer groups, and the financial services industry — are concerned that Mulvaney will now rely only on industry voices.
• Under Mulvaney, the CFPB has dropped cases against payday lenders, halted a probe into credit-monitoring firm Equifax, and eliminated an office dedicated to student loans; it is contemplating dropping other enforcement actions. The advisory board was not consulted on any of these actions, despite a legal mandate to the contrary.

What do you think?

Should the CFPB be pared down? Does this latest move compromise necessary consumer protections? Hit Take Action, then share your thoughts below.

—Sara E. Murphy

(Photo Credit: U.S. Consumer Financial Protection Bureau)