Mick Mulvaney. Photographer: Andrew Harrer/Bloomberg
Acting CFPB Director Mick Mulvaney Wednesday disbanded the agency's Credit Union Advisory Council and two other boards, saying they will be reorganized into smaller groups, with new members.
"Today we begin the process of transforming the Bureau's Stakeholder Outreach and Engagement work, which includes transitioning from former modes of outreach, to a new strategy to increase high quality feedback," agency officials said, in a message to members of the credit union council, the Community Bank Advisory Board and the Consumer Advisory Board.
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Recent meetings of the credit union and consumer groups have been postponed, with members of the consumer board expressing concern that they were being marginalized. CFPB officials said that no meetings of the advisory boards will be scheduled until the new members are appointed.
CFPB officials said the councils will be continued, with members who apply through an application process that began earlier this year.
At the heart of the matter may be the Trump Administration's desire to appoint board members more sympathetic to a change in philosophy at the bureau. Members of the boards were selected during the tenure of Director Richard Cordray, an aggressive regulator. Acting Director Mick Mulvaney has signaled that he will be much friendlier toward the businesses the agency regulates.
The agency said that in addition to the advisory boards, agency officials will rely on regional town halls and roundtable discussion at the agency's office.
Members of the CFPB's Consumer Advisory Board said they were angry and disappointed by Mulvaney's decision. Board members, several of whom work for consumer groups, have clashed with Mulvaney over the new direction the CFPB appears to be headed
"It's very disheartening," said Ruhi Maker, a senior staff attorney with the Empire Justice Center in New York, and a member of the citizens' council.
Maker said that members were told that the size of the group made it too expensive to hold meetings. But she added that members of the board were never asked whether they could pay their own expenses to meetings.
"Firing the current CAB members is another move indicating Acting Director Mick Mulvaney is only interested in obtaining views from his inner circle,and has no interest in hearing the perspectives of those who work with struggling American families," said Ann Baddour, board chairman and director of the Fair Financial Services Project at Texas Appleseed, a public interest group.
A CFPB official quickly fired back.
"The outspoken members of the Consumer Advisory Board seem more concerned about protecting their taxpayer funded junkets to Washington, DC and being wined and dined by the Bureau than protecting consumers, said John Czwartacki, the CFPB's chief communications officer.
Members of the credit union advisory group have not yet responded to requests for comment.
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