On Mar. 26, House report hearing on customer protections and CFPB.
House reported hearing, A New Era for the CFPB: Balancing Power and Reprioritizing Consumer Protections, re regulatory and legal landscape and structure of the CFPB.
Subcommittee Chair Andy Barr also introduced bill during the hearing that could improve the regulatory landscape as well as bring accountability to the CFPB.
Hearing Notes
Committee members noted that CFPB has been an overreaching regulator, and political agendas led to burdensome regulations, discouraged innovation and access to credit.
Transparent, law-abiding CFPB will foster an environment that promotes competition.
Reported a need to reform the CFPB as an agency that is responsive to Congress.
Agency responsible as it executes rulemaking, delivers better outcomes for citizens.
Noted that consumer protection is critical, however, the regulations are overly burdensome, are poorly analyzed, and can reduce access to financial products.
Representatives from Logix Federal Credit Union, Hudson Cook, LLP, Consumer Bankers Association, Phelps & Phillips, LLP issued statements in support of Committee.
List of Bills Discussed
H.R. 654, Taking account of bureaucrats’ spending (TABS) act of 2025, H.R. __, the Consumer financial protection commission act, H.R. __, CFPB–IG reform act of 2025.
H.R. 2183, the CFPB dual mandate and economic analysis act, H.R. __, the Transparency in CFPB cost-benefit analysis act, H.R. 1652, the Rectifying UDAAP act.
H.R. 1606, the Making the CFPB accountable to small businesses act of 2025.
Hearing also addressed H.R. 1653, the Civil investigative demand reform act of 2025.
Additionally, H.R. __, the Business of insurance regulatory reform act of 2025.
H.J.Res. 74, Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to Prohibition on Creditors and Consumer Reporting Agencies.
US ACU Statement
US ACU issued statement in advance of Ana Fonseca, of Logix Federal Credit Union's testimony, addressed CFPB shift away from its statutory consumer protection mission.
Shift took away millions of dollars Logix Federal CU could put to work for members.
She also included recommendations for legislative changes to improve the CFPB.
Logix had a member-owned cooperative structure that makes credit unions the original consumer protectors but are burdened by rules and costs of being regulated by CFPB.
Crossing the arbitrary $10bn threshold that subjects Logix to greater CFPB scrutiny has a cost that takes millions of dollars away from programs to serve its members.
Recommended moving leadership to a bipartisan commission, increasing Congressional oversight, providing clarity on UDAAP, reforming Civil Investigative Demand process.
Also recommended expanding and clarifying exemptions for credit unions from CFPB.
Further, recommended increasing CFPB usage of cost-benefit analysis, SBREFA panels.
