The recent action by the Lower East Side People's Federal Credit Union (LESPFCU) in filing suit against the President naming Budget Director Mulvaney as interim Director of the Consumer Financial Protection Bureau (CFPB) is puzzling. Why a credit union would take issue with the President exercising his authority under the law is difficult to understand.
The press reports on the lawsuit state that the credit union claims that “regulatory chaos” exists because of the President's action and that it “does not know who is validly in charge of the CFPB” and “whose rules to follow.” They further contend that Director Mulvaney is on a mission “to destroy a bureau that protects thousands of credit union members.” The president of the credit union believes that their members “need the CFPB to protect them against unscrupulous payday lenders, mortgage sellers and others regulated by the CFPB.”
It is unfortunate that the CEO of LESPFCU feels her time and energy is best spent challenging the legal actions of President Trump rather than focusing on providing the financial services her members may need to avoid unscrupulous providers. It is unfortunate that she has chosen to spend her members' money on legal fees to file a lawsuit when it is questionable the credit union has standing to do so. It is unfortunate that she believes it is necessary to be involved in an issue that will have no impact on the day to day activities of the credit union or the lives of its members. And it is unfortunate that she has predetermined how the President wants the CFPB to operate.
As President Trump has repeatedly said, his goal is to have all federal agencies function efficiently and effectively as well as carry out their missions in a way that will be of benefit to all citizens. The President is committed to protecting the financial rights of everyone and making sure they have access to all the financial services they need. Whoever runs the CFPB now or in the future will be charged with carrying out that mission.
The goal is not to destroy anything but to make things easier and better for everyone. The protection will remain. It's just a better plan on how to do it.
Michael Fryzel is a board member for the National Credit Union Association.
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