U.S. Sens. Katie Britt (R-AL) and Bill Hagerty (R-TN) have reintroduced legislation that would make the Consumer Financial Protection Bureau (CFPB) part of the congressional appropriation process.
The proposed Consumer Financial Protection Bureau Accountability Act would update the Consumer Financial Protection Act of 2010, which designated the Federal Reserve as the funding source of the CFPB. The new bill would switch the funding responsibility for the CFPB to Congress, thus requiring the regulator to be accountable to Capitol Hill. The legislation would also redirect the excess revenues from the CFPB’s civil penalties into the U.S. general fund rather than allowing the regulator to determine how to use the money.
The new bill comes in the wake of last month’s 7-2 ruling by the U.S. Supreme Court that determined the funding mechanism of the CFPB did not run afoul of the Appropriations Clause of the Constitution.
“The statute that authorizes the Bureau to draw money from the combined earnings of the Federal Reserve System to carry out its duties satisfies the Appropriations Clause,” wrote Justice Clarence Thomas for the court’s majority. “Although there may be other constitutional checks on Congress’ authority to create and fund an administrative agency, specifying the source and purpose is all the control the Appropriations Clause requires.”
“The CFPB has continued to operate as a partisan, rogue regulator, acting far outside of its congressional mandate and without any true accountability to Congress,” said Britt. “This commonsense legislation would ensure the Bureau is held accountable to the American people by subjecting it to the congressional appropriations process.”
“The CFPB must be required to go through the regular congressional appropriations process to ensure public accountability,” added Hagerty. “As a lifelong businessman, protecting consumers in the financial marketplace is important, but handing vast government regulatory power to an agency that is not accountable to the American people’s elected representatives is unacceptable. Americans deserve to have far greater input in this agency.”
The additional co-sponsors of the bill include Senate Banking Committee Ranking Member Tim Scott (R-SC) and Sens. Kevin Cramer (R-ND), Mike Crapo (R-ID), Steve Daines (R-MT), Cynthia Lummis (R-WY), John Kennedy (R-LA), Mike Rounds (R-SD), and Thom Tillis (R-NC).
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About time the CFPB should have accountability for it;s monies received.
“Rogue” agency is the right term for CFPB. Someone needs to control them.
Any time there’s no one from the other party sponsoring something like this, it makes me think the sponsors and those introducing this are being kept from making money.
Our country is terribly split today. With congressional oversight, it will be easier and quicker to shine a light on operations. The party out of power will one day be in power, and thus, will have their day.
Really? a Do NOTHING Congress that is only interested in putting money into their personal check books, especially the congressional members from “those poor southern states that lost the war” plus do it in the name of “Jesus” and do “NOTHING’ for their constituents, are going to be in charge of more money, please, what a joke!
I would disagree with this whole heartedly. Congress already has enough money to mis-spend & mis-appropriate. The CFPB was partially created to protect consumers from our government after they assisted in causing the housing crash from 2008. I don’t think we can afford to have them involved.
And just so we are clear, much of the fining dollars are being put back into the public sector to help people buy homes through down payment assistance programs and the like. Which, of course, we must have since such a large percentage of the American public can’t qualify to buy homes right now because of interest fates, housing prices and the cost of insurance. I imagine Congress will find a much “better” use for the money….LOLOLOLO….nope….find another solution that doesn’t involve Congress please!