Do Not Weaken CFPB Consumer Watchdog

February 1, 2014
Consumer Reports 
mortgage lending news
Consumers Union, the policy and advocacy arm of Consumer Reports, writes that the Consumer Financial Protection Bureau -- created after the financial crisis -- has done a good job of protecting consumers from financial fraud and deception. Since 2011, the agency has pursued companies that cheated customers and generated a reported $3 billion in relief for 10 million consumers, Consumers Union points out. The bureau also has elevated standards for mortgages and established federal oversight of payday lenders and debt collectors.

Opponents of the CFPB are now supporting a bill in the U.S. House of Representatives, H.R. 3193, that Consumers Union says would weaken the regulator and undercut its ability to help the public. This bill would make it easier for other regulators to overturn the CFPB's rules and would attempt to restructure the bureau. This could delay rule makings and ongoing enforcement actions. The proposal also would change the CFPB's funding rules, which could encourage industry groups to lobby to deny funds for the agency. "We think this bill would handcuff the CFPB," the publication's editorial concludes, "and that's why we're urging the House to reject it."

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