Committee Republicans are Taking Action to Rein in Unaccountable CFPB
October 27, 2021 -
In advance of today’s hearing with the new Consumer Financial Protection Bureau (CFPB) Director, Rohit Chopra, Committee Republicans are taking action to rein in the unaccountable agency. Since its inception, the CFPB’s structure and funding mechanisms have insulated it from transparency and accountability to Congress and the American people.
Last year’s Supreme Court decision that struck down the CFPB’s unconstitutional leadership structure was a crucial step toward much-needed accountability at the Bureau. But there is more work to be done.
Through letters and legislation, Committee Republicans continue to bring oversight, transparency, sound policy, and good governance to the CFPB:
On January 27, 2021, Rep. Tom Emmer (MN-06), the top Republican on the Subcommittee on Oversight and Investigations, introduced the CFPB Dual Mandate and Economic Analysis Act. H.R. 527 will force the CFPB to focus on competition and consumer choice as part of its mandate.
On February 3, 2021, Rep. Barry Loudermilk (GA-11) introduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act. H.R. 766 will require federal financial regulators, including the CFPB, to target any regulatory actions to limit burdens on the institutions involved, commensurate with their risk profile.
On February 9, 2021, Rep. Andy Barr (KY-06), the top Republican on the Subcommittee on National Security, International Development, and Monetary Policy, introduced the Taking Account of Bureaucrats’ Spending (TABS) Act. H.R. 790 will add accountability to the CFPB’s funding by bringing it under the annual Congressional appropriations process.
On June 30, 2021, Rep. Alex Mooney (WV-02) introduced the Financial Guidance Review Act. H.R. 4232 will require regulators, including the CFPB, to report to Congress on non-binding guidance, which does not go through the public comment process, and revoke guidance found to have an economic impact of $100 million or more.
On July 15, 2021, Rep. Patrick McHenry (NC-10), the top Republican on the House Financial Services Committee, led all Committee Republicans in a letter to then-Acting CFPB Director David Uejio detailing how policies he enacted will harm American consumers, workers, and families.
On July 22, 2021, Rep. Roger Williams (TX-25) introduced the Unfair or Deceptive Acts or Practices Uniformity Act. H.R. 4548 will foster innovation by limiting arbitrary enforcement actions from the CFPB based on the vague legal definition of “abusive.”
On July 28, 2021, Rep. Blaine Luetkemeyer (MO-03), the top Republican on the Subcommittee on Consumer Protection and Financial Institutions, introduced the Consumer Financial Protection Commission Act. H.R. 4773 will reform the CFPB’s structure by replacing the position of Director with a five-member bipartisan commission, adding greater accountability.
On October 15, 2021, Rep. Patrick McHenry (NC-10), the top Republican on the House Financial Services Committee, led all Committee Republicans in a letter to CFPB Director Rohit Chopra outlining concerns with three partisan, anti-consumer actions recently taken by the CFPB, while awaiting a permanent leader, regarding the abusiveness standard, supervisory process, and Military Lending Act authority.
On October 21, 2021, Rep. Patrick McHenry (NC-10), the top Republican on the House Financial Services Committee, and Rep. Tom Emmer (MN-06), the top Republican on the Subcommittee on Oversight and Investigations, sent a letter to the Inspector General for the CFPB demanding he turn over any findings from his investigation into reports that the Biden administration pushed out CFPB career staff due to their political affiliations, which would violate federal employment laws.
On October 25, 2021, Rep. Tom Emmer (MN-06), the top Republican on the Subcommittee on Oversight and Investigations, introduced the CFPB Whistleblower Incentives and Protection Act. H.R. 5714 will establish a whistleblower program to encourage legitimate reporting to the CFPB that helps detect and investigate fraudulent actors, similar to other financial regulators.
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