Holding the CFPB Accountable
The core mission of the Consumer Financial Protection Bureau (CFPB) is to ensure that financial institutions are adhering to consumer protection laws and regulations.
Under the leadership of the CFPB’s newest director, Rohit Chopra, the agency is harming competition and consumer choice in the financial services sector by attempting to regulate market competition, shunning procedural requirements under the Administrative Procedure Act, and devising new enforcement powers for the Director.
The CFPB is...
- Mischaracterizing the competitive landscape of the financial servicesAmerican consumers benefit from a highly competitive market when it comes to selecting the banking services that suit their needs and are empowered to make informed decisions about their banking and financial services’ needs.
- Attempting to regulate competitionThe CFPB is not a competition regulator, however the agency has embarked on a regulatory agenda ostensibly focused on competition. The agency is exhibiting a misunderstanding of the financial services market by overlooking overhead costs necessary to create, market, and provide services to customers.
- Denying companies their fair day in courtRecent changes to the CFPB’s rules for administrative adjudication expand the Director’s powers and reduce protections for defendant companies in ways that will lead to a lack of due process and make it more difficult for defendants to appeal to Article III courts.
- Failing to adhere to well-established legal processes for policymaking.Laws require the public to have an opportunity for participation through the public comment process. Recently, the CFPB informed the public that it has unilaterally established a new interpretation of its authority to prevent Unfair, Deceptive, and Abusive Acts and Practices. The CFPB states that it intends to apply the law in a way, that it admits, Congress did not prescribe.
Taking the Reins
Congress should continue to use its oversight and legislative tools to ensure that the CFPB only acts within the mandate they have granted it. The Chamber highlights numerous legislative reforms in its 2018 report, “Consumer Financial Protection Bureau: Working Towards Fundamental Reform,” that remain more relevant than ever.
Congress should enact legislation to
Establish a bipartisan commission to run the CFPB.
Subject the CFPB to proper budget oversight via the appropriations process.
Create an independent inspector general for the CFPB, instead of depending on the Federal Reserve’s IG.
Provide companies right of removal to federal court from the CFPB’s administrative adjudication forum.
Remove the CFPB Director from the board of the Federal Deposit Insurance Corporation (FDIC) and replace this position with an independent board member.
Timeline of Agency Engagement
- April 2022The U.S. Chamber of Commerce and other associations sent a letter to the CFPB objecting to new powers claimed by the Director to influence administrative adjudication.
- October 2021The U.S. Chamber of Commerce sends a letter to Director Chopra expressing our desire to continue our longstanding relationship with the agency to advance consumer protection.
- June 2020Congress and the White House use the Congressional Review Act to void guidance that would regulate indirect lending via automotive dealers.
- May 2018Congress and the White House use the Congressional Review Act to void guidance that would regulate indirect lending via automotive dealers.
- July 2017Congress and the White House use the Congressional Review Act to void regulation issued by the CFPB to prohibit the use of arbitration clauses
- September 2017The U.S. Chamber of Commerce sues the CFPB for its unlawful regulation of arbitration clauses.
- September 2009The U.S. Chamber of Commerce issues a report, “The Impact of the Consumer Financial Protection Agency on Small Businesses,” expressing concern with the lack of checks and balances that would be imposed on the newly created Consumer Financial Protection Bureau.
- Jun 28, 2022U.S. Chamber Submits FOIA Requests to CFPB
- Jun 22, 2022U.S. Chamber Letters to CFPB on Agency Abuse
- May 09, 2022Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking (Regulation V); 87 FR 20771
The Chamber provides comments on the inclusion of adverse information in consumer reporting in cases of Human Trafficking.
- Apr 11, 2022Trade Associations Comments on the CFPB RFI on Fees
Financial trade associations comments in response to the Consumer Financial Protection Bureau’s (CFPB)’s Request for Information Regarding Fees Imposed by Providers of Consumer Financial Products or Services.
- Apr 08, 2022Rules of Practice for Adjudication Proceedings; Docket No. CFPB-2022-0009.
The Chamber's letter on the Rules of Practice for Adjudication Proceedings sent to the Consumer Financial Protection Bureau on April 8, 2022.
- Apr 04, 2022Request for Information Regarding Fees Imposed by Providers of Consumer Financial Products or Services; Docket No. CFPB-2022- 0003, 87 FR 5801
This letter requesting information regarding fees imposed by Providers of Consumer Financial Products or Services was sent on April 4, 2022.
- Dec 21, 2021Comments to the CFPB on the Implementation of Sec. 1071 of Dodd-Frank
The U.S. Chamber's comments to the CFPB on implementation of section 1071 of Dodd-Frank.
- Dec 09, 2021Bank regulator erupts in partisan split as Democrats go rogue
As reported by Sylvan Lane for The Hill, the CFPB, under Rohit Chopra's leadership causes turmoil by requesting public comment without approval from FDIC.
- Sep 30, 2021Letter to Rohit Chopra on His Confirmation as Director of the CFPB
Following his confirmation as the Director of the CFPB, CCMC sent a letter to Rohit Chopra congratulating him on his confirmation and outlining Chamber policy priorities for the CFPB.