Republicans on the House Financial Services Committee have unveiled a 70-page plan to “reform” the Consumer Financial Protection Bureau and invited the public to submit comments by August 21.
Behind that carefully chosen word is a sweeping corporate wish list designed to make it harder for the CFPB to investigate financial misconduct, punish lawbreakers, and return money to people who were ripped off.
Their proposal would subject the CFPB to annual political funding fights, narrow its authority to stop unfair and abusive practices and give certain small-dollar lenders protection from civil penalties and private damages.
It would also raise the threshold for CFPB supervision of large banks from $10 billion to $21 billion, and slash a top statutory civil penalty from $1 million to $50,120. Every new hurdle gives banks, payday lenders, debt collectors, credit bureaus, and fintech companies another opportunity to escape accountability.
This corporate protection plan would pile congressional sabotage on top of the damage already inflicted by the Trump administration. Under Trump and Russell Vought, the CFPB has permanently dismissed 23 pending enforcement actions and abolished or weakened orders in at least 23 already-settled cases, including cases involving fraudulent payment systems, deceptive credit cards, predatory mortgages, and discriminatory lending.
Congress should focus on putting the CFPB back to work for people, families, and communities, not pass “reforms” from a corporate wishlist.
Tell the House Financial Services Committee to reject this corporate protection plan and demand a funded and staffed CFPB that robustly enforces existing consumer protection laws.
Before Trump took control, the CFPB obtained more than $21 billion in relief for over 200 million people. It returned $1.8 billion to 4.3 million consumers harmed by credit repair companies that used deceptive bait-and-switch advertising, recovered hundreds of millions for servicemembers and veterans, confronted abusive student loan servicing, and challenged illegal overdraft fees.
Those victories explain why Wall Street wants the CFPB “reformed.” Strong enforcement costs corporate lawbreakers money. Meaningful penalties deter repeat offenses. Direct supervision uncovers abuse before it spreads. An independent funding structure keeps bank lobbyists and their congressional allies from shutting down investigations by threatening the agency’s budget.
Congress should insist that the CFPB restart investigations, restore its enforcement and supervision teams, pursue abandoned cases, defend strong consumer safeguards in court, and use its authority against unfair, deceptive, and abusive practices.
That includes stopping predatory lenders from disguising triple-digit loans behind misleading names, holding companies accountable for false advertising, protecting people from discriminatory lending, and cracking down on junk fees that make basic financial services more expensive.
The Committee asked the public what should happen to the CFPB. The agency needs the independence and resources to enforce the laws already on the books, hold financial corporations accountable, and recover money for the people they harmed. Sign on to our message now.
Thank you for standing up for people and families.
- Tom.
Tom Feltner (he/his)
Associate Director of Consumer Policy
Americans for Financial Reform
