Three congressional bills trying to weaken the Consumer Financial Protection Bureau

In July, a new federal agency is going to launch. That CFPB has been in the planning stages for years. The CFPB, however, would be weakened by several new bills. All three bills have the intention of weakening the new agency before it even launches. All three bills will be debated in the House, however they have not become law.

How the CFPB is looking

The Consumer Financial Protection Bureau was initially created by the Dodd-Frank Act to be able to “promote fairness and transparency for mortgages, charge cards and other consumer financial products and services.” The beginning of the bureau is coming up. It is supposed to start July, 2011. Even with the deadline, there still isn’t a director. The Consumer Financial Protection Bureau may have to wait a while for one. The Security of Treasury will take this role until a director is nominated.

Which bills would affect the Consumer Financial Protection Bureau

In the U.S. House of Representatives, three separate bills to weaken the CFPB have been introduced. Rather than a Consumer Financial Protection Bureau director, there would be a five-member commission with HR 1121. This is called the Responsible Consumer Financial Protection Regulations Act of 2011. Any rules made by the CFPB could be overturned by the Department of Treasury’s Financial Stability Oversight Council with HR 1315. It is also called the Customer Financial Protection Safety and Soundness Act. Finally, HR 1667, the Bureau of Consumer Financial Protection Transfer Clarification Act, would block the agency from operation until a director has been confirmed. The Financial Services Committee has approved all three bills leaving it up to the House to debate.

Plans for the CFPB

There are several things the Consumer Financial Protection Bureau will be in charge of, even though they may change. The Consumer Financial Protection Bureau will be in charge of consumer protection. They will monitor financial products with this in mind. The CFPB would be in charge of enforcing any federal financial laws in place already. Finally, the Bureau will have a ton of information available. Customers will be able to access the information.

Citations

Treasury.gov

treasury.gov/initiatives/Pages/FSOC-index.aspx

WalletPop

walletpop.com/2011/05/12/5-things-the-consumer-financial-protection-bureau-will-do-for-yo/

House.gov

house.gov/