The House passed legislation late Thursday, H.R. 3193, the Consumer Financial Freedom and Washington Accountability Act, to place significant curbs on the Consumer Financial Protection Bureau — what the House Financial Services Committee chairman says is likely the “single most powerful and least accountable agency in Washington.”
The bill was sponsored by Rep. Sean Duffy, R-Wis., and passed by a 232-182 vote. It would not only replace the CFPB’s director with a bipartisan board, but it would also place the bureau’s employees — whose annual compensation averages $178,521, according to House Financial Services Committee Chairman Jeb Hensarling, R-Texas — on the civil service pay scale, and would require that the bureau be funded through congressional appropriations.
It’s unclear whether the bill has any support in the Senate.
“When it comes to our credit cards, our auto loans, our mortgages, the CFPB has unbridled, discretionary power not only to make them less available and more expensive, but to absolutely take them away,” said Hensarling in comments Thursday on the House floor.
Rep. Randy Neugebauer, R-Texas, added that he was worried about the CFPB’s current ability to draw money directly from the Federal Reserve.
“The CFPB has unusually broad regulatory authority that reaches across our economy,” he said. “But since it operates outside the normal budgeting process, it has almost no accountability to our taxpayers. That worries me.”
H.R. 3193 includes a series of bills passed by the Financial Services Committee, including H.R. 3519, the Bureau of Consumer Financial Protection Accountability and Transparency Act of 2013, authored by Neugebauer, which would subject CFPB to the appropriations process like other regulators.
But the House democratic opposition, led by Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee, condemned the legislation for making “drastic changes that weaken the bureau,” like eliminating the director, ending CFPB’s independent funding stream and making it easier for CFPB rulings to be overturned.