CFPB Director Kraninger Visits Capitol Hill Next Week
Kathy Kraninger, the Director of the Consumer Financial Protection Bureau (CFPB), will visit the House Financial Services Committee and the Senate Banking Committee next week to deliver the semi-annual report of the CFPB.
In what promises to be a testy hearing, Maxine Waters, Chair of the House Financial Services Committee, has already taken the first jab at Director Kraninger, labeling the title of the hearing, “Who Is Standing Up for Consumers? A Semi-Annual Review of the CFPB?”
Much of the hearing will likely center on Kraninger’s recent and unprecedented position that the CFPB is unconstitutional as it is currently structured. Director Kraninger voiced this position in a letter sent to Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi in September, which stated, “I am writing to advise you that the [CFPB] has determined that the for-cause removal provision of [Dodd-Frank] is unconstitutional.” In addition, Kraninger asked the U.S. Supreme Court to hear a case that will ultimately decide whether the leadership structure of the CFPB is indeed constitutional.
Congressional Democrats strongly oppose this position, saying that CFPB leadership structure is designed to be independent from the White House. The Democratically-controlled House filed an amicus brief urging the Supreme Court to ignore Director Kraninger’s request and instead pass on this case.
Moreover, democratic leadership is expected to press Director Kraninger on enforcement. CFPB enforcement has dropped over the past several years, despite the CFPB bringing more enforcement actions against companies in Kraninger’s first six months at the agency than the CFPB did during the first six months of her two predecessors, Richard Cordray and Mick Mulvaney.
Those interested can watch Director Kraninger’s testimony in front of the House Financial Services Committee at 10 AM on Wednesday, October 16 here and in front of the Senate Banking Committee at 10 AM on Thursday, October 17 here.