Government watchdog dissolves consumer advisory board

Posted at 4:18 PM, Jun 06, 2018
and last updated 2018-06-06 16:18:49-04

The Consumer Financial Protection Bureau has effectively dismissed all the members of an outside board that advises the bureau on fair lending, civil rights and underserved communities, according to an email obtained by CNNMoney.

In the email, the CFPB told members of the Consumer Advisory Board on Wednesday that it does not plan to hold any meetings until new board members can be appointed.

The board has 25 members. It was established by the 2010 Dodd-Frank financial reform law, which also created the CFPB.

The CFPB did not immediately answer a request for comment.

The CFPB was created to safeguard Americans from financial predators. The agency rolled out mortgage and payday-lender rules and cracked down on bad behavior by penalizing Citigroup, Wells Fargo and many other lenders.

But under Mick Mulvaney, the acting director appointed by President Trump, the bureau has reversed course. It has delayed the payday-loan rules, dropped lawsuits against payday lenders and stripped enforcement of fair-lending protections.