House Appropriations Committee votes to put economic recovery at risk by weakening consumer financial protection

Congress must allow CFPB to be funded as planned


Center for Responsible Lending
June 24, 2011

Statement by CRL President Mike Calhoun

"The House Appropriations Committee yesterday voted for a return to policies that allowed predatory financial products to plunder our economy. Clearly some lawmakers have forgotten the lesson of today’s financial crisis, which continues at great cost to taxpayers, shareholders, retirees and, of course, tens of millions of families who have needlessly lost their homes or seen them plummet in value.  

Specifically, the committee voted to slash the Consumer Financial Protection Bureau's budget and to subject the new agency to a politically charged funding process. The financial companies that created the current recession and backed the vote are fighting hard to prevent the CFPB—which won’t be implemented until July—from ever having a chance to do its job.

A strong, independent CFPB will help restore the economy by promoting a fair, transparent financial market. That will increase consumer confidence and the demand for products vital to job creation. Weakening the CFPB will lead to more financial abuse, more meltdowns, more taxpayer bailouts.

The full House and Senate need to act responsibly by allowing the CFPB to be funded as planned."

For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523 or charlene.crowell@responsiblelending.org.

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About the Center for Responsible Lending

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.