Should the Trump Admin’s Changes to the Consumer Financial Protection Bureau Be Reversed? (H.R. 1500)
Do you support or oppose this bill?
What is H.R. 1500?
(Updated June 7, 2020)
This bill — the Consumers First Act — would aim to reverse structural changes made to the Consumer Financial Protection Bureau (CFPB) by the Trump administration and prevent future efforts to undermine its mission.
The bill would codify the agency’s name into law as the Consumer Financial Protection Bureau to block prior renaming efforts (to the Bureau of Consumer Financial Protection) and prevent future attempts at rebranding it.
Additionally, it would reverse structural changes made by Acting OMB Director Mick Mulvaney to diminish the responsibility of several offices, including the Office of Fair Lending and Equal Opportunity.
Adequate staffing of these offices would be required, the number of political appointees would be limited, and the consumer complaint database made available to the public.
Argument in favor
The Trump administration has repeatedly tried to undermine and marginalize the Consumer Financial Protection Bureau. This bill would protect the agency from further attacks and ensure it can perform its responsibilities.
Argument opposed
Rather than passing a partisan bill to further politicize the CFPB, House Democrats should support bipartisan efforts to reform the agency in the mold of other bipartisan federal commissions.
Impact
The Consumer Financial Protection Bureau; the Trump administration; and Congress.
Cost of H.R. 1500
The CBO estimates that enacting this bill would cost $19 million over the 2019-2029 period.
Additional Info
In-Depth: House Financial Services Committee Chairwoman Maxine Waters (D-CA) introduced this bill to “block the Trump Administration’s anti-consumer agenda and reverse their past efforts to undermine the mission of the Consumer Financial Protection Bureau”, and added:
“I consider the Consumer Financial Protection Bureau to be the centerpiece of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the leadership of former Director Richard Cordray, the agency operated as Congress intended, and helped people around the country with their mortgages, credit cards, student loans, and other financial institutions that had harmed consumers and returned nearly $12 billion to over 30 million consumers. Now, Trump’s appointees are trying to put a stop to that critical work. Democrats on this Committee will fight every day to make sure that the Consumer Bureau is able to work toward its mission of protecting consumers. That’s what the Consumers First Act is all about.”
House Republicans opposed this bill in committee and called it “an overt attempt by the Majority to codify their political agenda”, adding in its committee report:
“Since creation of the CFPB, Committee Republicans have fought against its rampant abuse of power, regulation through enforcement, and an unconstitutional structure governed by a single individual who is unaccountable. Committee Republicans support current efforts underway separate from H.R. 1500 to restructure the CFPB as a bipartisan Commission and urge Democrats to continue making the necessary reforms. Unfortunately, H.R. 1500 not only continues the status quo but exacerbates politicization of the agency.”
This bill passed the House Financial Services Committee on a party-line 34-26 vote and has the support of 29 cosponsors, all of whom are Democrats.
Of Note: The Consumer Financial Protection Bureau (CFPB) was created in response to the financial crisis by the Dodd-Frank Act to regulate consumer financial products and services, and offer advice and assistance.
The Trump administration has taken several steps to restructure and reform the CFPB since 2017, including reducing membership of its advisory boards, implementing a hiring freeze, and attempting to rename the agency.
Media:
Summary by Eric Revell
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