- United States
-
Global Sites
Public policy insight for your business
Concerns grow as assembly of CFPB nears completion
The Consumer Financial Protection Bureau (CFPB) is scheduled to assume regulatory and enforcement authority over a majority of financial consumer protection laws on July 21. While Elizabeth Warren — the senior advisor to the President tasked with assembling the CFPB — continues to hire staff and build the new agency, some in Congress have raised concerns that the CFPB lacks sufficient oversight.
In May, the House Financial Services Committee passed a number of bills that would increase the checks and balances of the CFPB by placing it under the direction of a five-member bipartisan commission rather than a single Director, as well as increasing the Financial Stability Oversight Commission’s ability to overturn CFPB actions. Furthermore, in light of concerns that the President has yet to nominate a permanent Director to the CFPB, a House panel also approved legislation that would extend the transfer date of July 21 until a Director has been confirmed by the Senate. While these bills are likely to be passed by the Republican-controlled House, the Senate, which is controlled by Democrats, is unlikely to approve similar legislation. In addition, a group of 44 Republican Senators sent a letter to President Obama on May 6 that urged him to increase oversight mechanisms of the CFPB and to take steps to make the new regulator more accountable to Congress by making the funding for the CFPB susceptible to the federal appropriations process.
While it is uncertain whether Congress and the White House can agree on a new oversight structure, the regulator will retain full authority over laws that guide risk-based pricing notices, the mortgage and credit card industries, consumer reporting agencies, debt collection agencies, payday lenders and many others.