Multiple Bills To Reform CFPB Again Pending In House Of Representatives

Following up on the failure in 2014 to implement changes to the CFPB through legislative action, on March 5, U.S. Rep. Sean Duffy (R-Wis.) reintroduced a package of bills seeking to make changes to the CFPB's leadership structure, how data is collected from consumers, and more.

Representative Duffy is the Chairman of the House Financial Services Subcommittee on Oversight and Investigations.  In coordination with some of his committee colleagues, he is again pushing this series of bills that were approved in 2014 by the House but not taken up by the Senate.

"After hearing testimony from Director Richard Cordray this [past] week, I am convinced now more than ever that the CFPB is in dire need of structural reform," Duffy remarked.  "He continues to stonewall Congress, he won't respond to Congressional inquiries, and why would he?  We have no tools in the toolbox to hold the fortress that is the CFPB accountable."

According to Duffy's press release, the series of bills include:

• The Bureau of Consumer Financial Protection Act to place the CFPB under the regular appropriations process;
• The Consumer Right to Financial Privacy Act, which requires the CFPB to obtain consumers' permission before they collect data on them;
• The Consumer Financial Protection Safety and Soundness Improvement Act, which reduces the number of members of the Financial Stability Oversight Council that may overturn a rule of the CFPB from two-thirds to a simple majority;
• The CFPB Pay Fairness Act, which puts CFPB employees, who today set their own rate of pay, on the regular government pay scale; and
• The Financial Product Safety Commission Act, introduced by Representative Randy Neugebauer (R-TX) and including Duffy as an original co-sponsor, which removes the director of the CFPB and replaces him with a bi-partisan commission.

According to Duffy, "Protecting consumers is important to everyone.  However, this is an agency that is led by one man.  It's an agency that makes rules and regulations that restrict access to credit for everyone while they collect data on consumers without their permission, and Congress can do nothing about it."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.