Taskforce Trouble: NACA and Other Consumer Advocates Sue the CFPB

Yesterday, several consumer advocate groups sued the Consumer Financial Protection Bureau (CFPB) and Director Kathy Kraninger about the CFPB's Taskforce assigned to review consumer financial laws and provide recommendations for improvement to the Director. According to the consumer advocates—including the National Association of Consumer Advocactes, the United States Public Research Group, and Kathleen Engel, who is a professor at Suffolk University—Taskforce is biased toward the industry. The lawsuit seeks to enjoin the Taskforce from continuing its work, make its records publicly-available, and to set aside its charter.

According to the 52-page complaint:

[D]espite the profound implications of the Taskforce’s work for consumer protections, Defendants have appointed to the Taskforce individuals who uniformly represent industry views. Indeed, the Chairman of the Taskforce, Todd Zywicki, believes that consumer protections are paternalistic, has argued that the CFPB is a “menace” “guarantee[d]” to manifest “bureaucratic pathologies,” and has worked on behalf of several large financial institutions to influence the Bureau and other agencies. All of his fellow Taskforce members have either expressed similar views or continue to work as industry consultants or lawyers.

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