At Hearing Today, Discussion Could Turn To Bill To Reverse Some Of CFPB’s Moves

WASHINGTON–Legislation that could reverse some of the actions put in place by former CFPB Acting Director Mick Mulvaney could be part of the discussion during a congressional hearing today.


The hearing, which is required as part of the Dodd-Frank Act that created the CFPB, will feature six witnesses, including the new CFPB director, Kathy Kraninger, who met separately with representatives of CUNA and NAFCU this week.

According to a discussion draft of the Consumers First Act, the potential legislation would reverse decisions Mulvaney made related to the agency’s operations, budget, staffing, supervision and more. The draft bill was created by Maxine Waters (D-CA), chair of the House Financial Services Committee, which is holding the oversight hearing today. The draft bill reportedly has 28 co-sponsors and expresses the “sense of the Congress” that the Bureau “should meet its statutory purpose in a transparent and accountable manner by operating in a way that is consistent with both the spirit and plain letter of the law.”

The legislation further states that Mulvaney attempted to change the agency’s name to Bureau of Consumer Financial Protection as an attempt to deemphasize its “core mandate” of enforcing consumer financial laws. Mulvaney, however, said he changed the name because Bureau of Consumer Financial Protection is how it is referred to in Dodd-Frank. The CFPB is again referring to itself as the CFPB.

What Legislation Would Also Do

The draft legislation also seeks to tighten up rules around  appointments of members to the Consumer Advisory Board (CAB), which Mulvaney disbanded, along with the Community Bank Advisory Council (CBAC) and Credit Union Advisory Council (CUAC), which Mulvaney reconstituted with six members each. The legislation seeks to return the Advisory Councils to no fewer than 25 members each.

In addition to Kraninger, testifying at the hearing titled “Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau,” will be:

  • Linda Jun, senior policy counsel, Americans for Financial Reform
  • Scott Weltman, managing shareholder, Weltman, Weinberg & Reis Co., L.P.A.
  • Seth Frotman, executive director, Student Borrower Protection Center
  • Jennifer Davis, government relations deputy director, National Military Family Association
  • Hilary Shelton, director & senior vice president for advocacy and policy, National Association for the Advancement of Colored People (NAACP)
  • Linda Jun, senior policy counsel, Americans for Financial Reform
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Copyright Year: 2019
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