Week ahead: Super Tuesday, CFPB gets its day in court

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A long-standing credit union bogeyman will finally get its day in court this week.

The Consumer Financial Protection Bureau heads to the Supreme Court this week, with oral arguments starting Tuesday in a case that aims to determine whether the agency’s single-director structure is constitutional. Aside from debates over whether the CFPB should have any relationship with CUs, many in the credit union industry have long argued that the bureau needs a bipartisan, multiperson commission rather than a single presidential-appointed director. Credit Union Journal will have coverage of this weeks’ oral arguments and a decision is expected sometime in the early summer.

Along with the SCOTUS hearing, voters in 14 states will also head the polls for Super Tuesday, which could have a significant impact beyond just helping determine which Democrat takes on President Trump this November.

“Obviously a lot of the attention is on the presidential Super Tuesday primaries tomorrow in 14 states, but [the Credit Union National Association is] especially following the five states where there are the first-in-the-nation congressional primaries,” said Trey Hawkins, CUNA’s deputy chief advocacy officer.

Nearly 100 credit union-supported candidates are on the primary ballot Tuesday, across California, North Carolina, Texas, Alabama and Arkansas. Credit unions continue to donate toward candidates supportive of the industry but don’t have many options if those candidates take positions or act in ways that are counter to the industry’s values — a position CU donors are increasingly finding themselves in.

Lastly, both the House and Senate are in session this week and will consider a variety of topics relevant to credit unions, including:

  • A Tuesday hearing in the House Ways and Means Committee on the proposed 2021 fiscal year budget, including testimony from Treasury Secretary Steven Mnuchin.
  • A hearing in the House Appropriations Committee on the U.S. Agency for Interntainal Development’s 2021 budget request, also scheduled for Tuesday.
  • A hearing on discrimination in auto insurance is scheduled for Tuesday in the House Financial Services Committee, and on Friday there will be a hearing on modern-day redlining in New York.

On Tuesday and Wednesday, the National Credit Union Administration will also hold workshops on financial inclusion and minority-depository institutions.

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