Released: May 11, 2011

Consumer Action opposes bills to cripple consumer bureau

House Republicans grasp at ways to weaken new bureau

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The House Financial Services Committee is expected to vote Thursday on bills that would damage the new federal Consumer Financial Protection Bureau (CFPB) before it even opens its doors.

The Bureau is scheduled to start operating on July 21 but if House Republicans have their way the Bureau will open with diminished authority and a weakened ability to protect consumers from unfair and deceptive practices.

The House will vote on H.R. 1315, a GOP sponsored bill which would make it easier for existing regulators to veto new rules written by the CFPB.

Committee members also will vote on H.R. 1121, a bill to convert the leadership of the Bureau from a director to a five-member commission, diluting its ability to take decisive action against bad actors.

Consumer Action opposes both bills. If existing financial regulators had done their jobs to curb predatory lending practices, our country might have avoided the economic destruction that many people are still struggling to overcome. Consumer Action stands behind the CFPB because is the right model to protect consumers from predatory mortgages, payday lenders, credit card traps and more. America’s hardworking families, seniors, students and military members should not be left defenseless from greed and deception in the marketplace.

“It’s time for the political gamesmanship to end. Conservative lawmakers should lick their wounds and move on,” said Ruth Susswein of Consumer Action. “Why not give the CFPB a chance to do the job Congress gave it.”

About Consumer Action

Consumer Action has been a champion of underrepresented consumers since 1971. A national, nonprofit 501(c)3 organization, Consumer Action focuses on financial education that empowers low to moderate income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change particularly in the fields of credit, banking, housing, privacy, insurance and utilities. www.consumer-action.org