Worried about the accountability with the year-old Consumer Financial Protection Bureau - created by the Dodd-Frank Act - the head of the American Bankers Association testified to Congress about the matter.
Michael Hunter, chief operating officer for the ABA, spoke before the House Subcommittee on Financial Institutions and Consumer Credit regarding measures the group would like to see implemented to ensure the CPFB is held accountable for its spending and decision-making.
Specifically, Hunter noted a five-member board, as opposed to a single agency director, is likely the best way to monitor the CFPB's actions and make sure all decisions that affect lenders, such as community banks, made by the agency are thoroughly examined.
"We believe such a structural change would provide an effective check and balance," said Hunter. "As the law is currently written, the Bureau's director has sole authority to decide the direction and parameters of the consumer financial product market. This vests far too much power in one person to fundamentally alter the financial choices available to customers."
The ABA is not alone in its request for reform of the CFPB's structure. Several lawmakers have had issues with President Barack Obama's appointment of director Richard Cordray without the approval of Congress.