Director Kraninger Unlawfully Stacked “Taskforce on Federal Consumer Financial Law”; Outsourced Policymaking to Private Corporate Interests
Secretive Taskforce Held Numerous Closed-Door Meetings in February and March Alone; Poised to Recommend Rollback of Consumer Financial Protections
National Association of Consumer Advocates, U.S. Public Interest Research Group, and Prof. Kathleen Engel Fight Back as Nation Grapples with Continued Economic Crisis
Boston, M.A. — Late Monday, Democracy Forward opposed the Trump administration’s attempt to end its lawsuit against the Consumer Financial Protection Bureau (CFPB) for unlawfully creating and operating its “Taskforce on Federal Consumer Financial Law” — an outside advisory group formed by Director Kathy Kraninger that is stacked with industry-aligned members, excludes consumer advocates, does not serve a public interest, and has conducted its work behind closed doors — all in violation of the Federal Advisory Committee Act (FACA).
This latest court submission, filed on behalf of the National Association of Consumer Advocates (NACA), U.S. Public Interest Research Group (PIRG), and consumer law expert Professor Kathleen Engel, details the myriad ways in which the CFPB’s illegal actions have harmed consumer advocates’ ability to track the work of the industry-led Taskforce and educate the public about its potential impact — and how the Taskforce will likely be used to push forward harmful, anti-consumer changes to existing law.
Ahead of the CFPB’s “listening session” with members of the Taskforce later today, Democracy Forward Counsel Kristen Miller said, “The CFPB unlawfully created the Taskforce — stacking it with industry representatives eager to roll back consumer protection measures — and has unlawfully allowed the Taskforce to insulate itself from public scrutiny. Try as it might, Director Kraninger’s CFPB can’t ignore the fact that its attempt to outsource policymaking to champions of deregulation is unlawful. We’ll continue our fight to ensure the CFPB follows the law and shutters its Taskforce.”
“The unlawful creation of this Taskforce is another effort by the Consumer Financial Protection Bureau to ignore its mission, working with industry apologists to protect financial service companies over consumers,” said Ira Rheingold, Executive Director of the National Association of Consumer Advocates. “Our court case is about preventing the CFPB from doing just that.”
The Taskforce, announced by CFPB Director Kathy Kraninger last October, violates the important mandates imposed by the Federal Advisory Committee Act to prevent special interests from exerting undue influence over the Executive Branch and its policymaking process.
