On February 14, Texas lawmakers introduced two companion bills that, if passed, would abolish the Consumer Financial Protection Bureau.
The Repeal CFPB Act
Senator Ted Cruz and Representative John Ratcliffe introduced the proposed legislation, dubbed the Repeal CFPB Act, which aims to eliminate Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Title X is the provision (known as the Consumer Financial Protection Act of 2010) that established the CFPB as an independent agency, and its repeal would essentially dismantle the Bureau.
Brief History of the CFPB
The CFPB was established during the Obama administration as the law enforcement agency and overseer for the financial industry. Its goal was to target and curb deceptive, unfair, and anti-consumer practices in a variety of financial products and services, mainly mortgages, student loans, credit cards, and prepaid debit cards. The CFPB has taken legal actions against big names within the industry, such as Wells Fargo, Navient, and other financial service providers.
What Critics Say
Critics of the federal agency have condemned its unconventional and controversial leadership structure (one-person directorship), as well as the fact that its budget is decided by the Federal Reserve without Congressional oversight. These criticisms are precisely what Senator Cruz and Representative Ratcliffe aim to address in their bills, which they say will allow businesses and consumers to overcome the “financial activism” that they believe is holding back the economy.
The CFPB’s Future
The Bureau’s future under the Trump administration remains unclear. In recent weeks, the CFPB and the Dodd-Frank Act have been the targets of the administration and GOP lawmakers, many of whom are calling for major reforms, such as breaking away from the current single-director structure and establishing additional checks and balances.
At Graham Legal, we pride ourselves with keeping up to date on the news and changes related to our practice areas. Our team of South Florida consumer protection attorneys are experienced with litigation involving many forms of consumer deception, such as unfair credit reporting, insurance fraud, and debt collection abuse.
If you are a victim of consumer deception or unfair treatment, call our law office today for a free consultation.