NY CU Sues Trump Over CFPB Appointee

on 10:48 AM

According to a recent article in the Credit Union Times, Lower East Side People’s Federal Credit Union filed suit in U.S. District Court for the Southern District of New York following the resignation of Consumer Financial Protection Bureau (CFPB) Director Richard Cordray, contending that President Trump illegally appointed Office of Management and Budget Director Mick Mulvaney to serve as interim director of the agency.

The suit states that the Mulvaney appointment is a “hostile takeover” that has thrown the credit union into “regulatory chaos.”

According to CU Times, the credit union is calling on the federal court to remove Mulvaney, Trump’s budget director, and affirm Leandra English, the CFPB’s deputy director, as the proper acting head of the bureau.
“We support the CFPB as a protector of our low income members’ financial rights, and fear that the appointment of an Acting Director beholden to the White House could result in upheaval and ultimate dissolution of this critical agency.  Having experienced the devastation that the 2008 mortgage crisis wreaked on our low income members, we need the CFPB to protect communities targeted by financial predators.”  Linda Levy, CEO
This suit is the second suit filed in connection with that appointment. English has filed one of her own contending that she is the proper interim director.

The $55m credit union serves approximately 8,500 members.