Published: April 2015

Another attempt to undermine the consumer watchdog

Republicans in Congress are at it again: threatening the power, autonomy and budget of the Consumer Financial Protection Bureau (CFPB) in favor of de-regulating banks and businesses (the same industries that were responsible for the Great Recession and the national economic meltdown). By passing H.R. 1195, Republican leadership attempts to reverse the agency’s power by making it more accountable to Congress than any other federal regulator.

The Bureau of Consumer Financial Protection Advisory Boards Act (H.R. 1195) intends to amend the  CFPB’s regulatory power by imposing the creation of three advisory committees (composed of small-businesses, credit unions and community banks) to advise the agency. The price tag for the advisory committees is an estimated $9 million over 10 years and will be paid by the CFPB. Offsetting these costs would severely limit Bureau resources and could lead to delays in future rulemakings.

The CFPB was established under the Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010 to bring increased protections to consumers of credit cards, student loans, mortgages, checking accounts, and other financial products and services. In only a few years since its creation, the CFPB has proved incredible success. Its enforcement actions have resulted in $5 billion in relief for roughly 15 million people and have led to over $150 million in civil penalties for illegal corporate practices.

Other Organizations

Alliance for Justice | American Association for Justice | Center for Justice & Democracy | Consumer Action | Consumer Federation of America | Consumers for Auto Reliability and Safety Consumers Union | Consumer Watchdog | D.C. Consumer Rights Coalition | Homeowners Against Deficient Dwellings | National Consumers League | National Fair Housing Alliance | Public Citizen | Public Justice | U.S. PIRG | Workplace Fairness

More Information

For more information, please visit the Center for Justice and Democracy.

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Another attempt to undermine the consumer watchdog   (LetterCFBPBudgethr1195.pdf)