House Committee Votes to Weaken the CFPB

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Friday, May 13th, 2011

By Neha Singh

The House Financial Services Committee approved three bills today that undermine the ability of the CFPB to safeguard consumers against unfair financial practices. Consumers Union had urged the committee to reject the attack on the CFPB. Take action now to let them know how the rest of America feels about this.

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The three bills are as follows:
1) HR 1121 – replaces the CFPB’s director with a five-member commission. Doing so would slow down the CFPB and make it prone to internal discord.
2) HR 1315 – makes it easier for other banking regulators to veto new rules developed by the CFPB. This is dangerous because a simple majority vote would nullify new CFPB rules (as opposed to the 2/3 majority currently required).
3) HR 1667 – postpones the date that the CFPB gets its full powers until it has a director in place. The longer the CFPB’s opening is delayed, the longer financial reform is delayed.

These bills put the CFPB on a short leash and will make it harder for this watchdog to protect consumers from hidden bank fees, shady loans, and other financial rip-offs Congress should be standing with consumers not the big banks and Wall Street firms that caused our financial crisis. We deserve a real watchdog in Washington to look out for middle class families and rein in abusive financial practices.

(photo credit daveoratox)

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