WASHINGTON – U.S. Senator John Boozman (R-AR) joined Senate colleagues to introduce the Consumer Financial Protection Bureau (CFPB) Accountability Act of 2017 to make the agency accountable to the American people by bringing it under the Congressional appropriations process.
“The CFPB is in desperate need of reform. The agency’s structure, as established by the Dodd-Frank Act, lacks transparency and accountability. Given that the rules and regulations made by this agency impact the lives of millions of Americans, there must be Congressional oversight,” Boozman said.
As Chairman of the Senate Appropriations Financial Services and General Government Subcommittee last Congress, Boozman met with CFPB Director Richard Cordray to discuss issues related to the agency’s mission and lack of accountability to Congress and the American people.
U.S. Senator David Perdue (R-GA) introduced the legislation that in addition to Boozman has the support of U.S. Senators John Barrasso (R-WY), Ted Cruz (R-TX), Steve Daines (R-MT), Mike Enzi (R-WY), Joni Ernst (R-IA), John Hoeven (R-ND), Johnny Isakson (R-GA), Ron Johnson (R-WI), John Kennedy (R-LA), Mike Lee (R-UT), Rand Paul (R-KY), Marco Rubio (R-FL) and Thom Tillis (R-NC).
The legislation has support from consumer and taxpayer advocacy groups. Here’s what they are saying:
Taxpayers Protection Alliance: “Currently, the CFPB operates outside of the jurisdiction of Congress (that most agencies operate in) and continues to be appropriated taxpayer funds without the proper Congressional oversight. This is an agency that demands scrutiny like any other federal agency and should be held accountable for their actions by moving into the proper process for Congressional appropriations,” said David Williams, President, Taxpayers Protection Alliance.
American Bankers Association: “Oversight by Congress would allow the very consumers who the Consumer Financial Protection Bureau was designed to protect to hold it accountable through their elected officials. An important principle that underlies this bill is that there needs to be an effective check and balance on the Bureau’s authority. The American Bankers Association supports the principle of accountability and balance and commends [the senators] for introducing this measure,” said James Ballentine, Executive Vice President of Congressional Relations and Political Affairs, American Bankers Association.
Credit Union National Association: “We appreciate Congress considering common-sense reforms to the CFPB so that it will focus on Wall Street and get out of the way of Main Street. Over the last six years, the new mortgage rules, the rule on international remittances, the proposals on small dollar lending and arbitration, and CFPB enforcement actions have impeded credit unions’ delivery of consumer-friendly products and services. Congress and regulators can, and should, provide greater consumer protection by ensuring that local, member-owned credit unions and small banks are able to thrive in a balanced, common-sense regulatory environment that is not rigged in favor of those who prey on consumers and the too-big-too-fail banks that caused the financial crisis,” said Jim Nussle, President & CEO, Credit Union National Association.