The new administration under Trump is busy with legislation that is squarely aimed at stripping Americans of consumer protections they got through CFPB (Consumer Financial Protection Bureau). The Republicans seem to have made it their top priority to eliminate it and repeal Dodd-Frank provisions.
The banking industry was unanimous that consumers use CFPB platform to single out firms and a low-level complaint is given the same weight as a serious allegation. The CFPB then uses these flawed and incomplete metrics to harass the businesses. The Consumer Financial Protection Bureau while defending itself said that the complaints that come to it are from the real people. It gives an insight into the consumer’s experience with the various financial institutions and the consumers have got a platform in the real sense where their grievances are actually heard and taken care of.
The Republican government has now decided to make businesses happy and are working on a bill, which if becomes a law will eliminate the existence of CFPB. There are nearly six bills for review that aim at different aspects of the Dodd-Frank financial reform law and the CFPB thus created.
The Vice President of policy and mobilisation for Consumer Reports, Laura MacCleery said, “The very same lawmakers who fought the creation of the CFPB are now hoping to take both the bark and bite out of this critical consumer watchdog. These bills would cripple the CFPB’s ability to stand up to the big banks and predatory lenders and leave consumers vulnerable to financial scams and rip-offs.”
Sen. David Perdue, R-Ga introduced a bill last week, which if passed would give the entire control over the protection group’s budget to the Congress. If it happens, the very purpose of having an agency that cannot be influenced by the financial industry lobbyists will be defeated.
Another bill introduced by Sen. Deb Fischer, R-Neb last month proposes to replace the single independent director of CFPB with a five-member commission. The Republicans have also called the firing of CFPB Director. Under the current structure, CFPB is an independent entity and even the President of the United States does not have the power of removing its Director. Richard Cordray, the director, however, made it clear that he does not intend to step down before completing his term, which continues till 2018.