Like Causes?

Install the App
TRY NOW

senate Bill S. 1335

Should the Consumer Financial Protection Bureau Be Eliminated?

Argument in favor

The CFPB imposes burdensome regulations that harm small businesses, consumers and the financial services industry overall. This stunts economic growth to the whole country’s detriment. Eliminating this agency would help boost the economy and reduce barriers to growth.

Bill's Opinion
···
08/09/2019
The best financial consumer protection is the free market and personal responsibility.
Like (35)
Follow
Share
JTJ's Opinion
···
08/09/2019
Don’t be a fool, big government only protects itself.
Like (9)
Follow
Share
Raymond 's Opinion
···
08/09/2019
So most of the comments on this as usual are PRO GOVERNMENT. Please protect me. Please wipe my bottom because I can’t seem to think for myself. My feelings may get hurt. Getting Government out of our lives and out of the economy and anything else very intrusive is best by far. So, ask yourself this question? Has Government done anything so very very great since 1960???? Not really. Higher taxes more people on welfare and broken up families. Destroying America from within to stay in power. Wake up AMERICA. CAREER POLITICIANS who have been in power for 20-30 even 40 years have done nothing for America.
Like (7)
Follow
Share

Argument opposed

The CFPB works to protect American consumers from predatory practices by the financial services industry and others. Eliminating this agency would be an administrative nightmare and a return to the pre-financial crisis days of poorly regulated banks taking advantage of consumers.

burrkitty's Opinion
···
08/09/2019
ARE YOU EFFING KIDDING ME?!?! I knew as soon as I read the title that it was a Republican bill. That’s bleeping insane. NO!!!! Do not remove consumer protections!! God you people are awful! Republicans always try and wreck the economy right before they lose power.
Like (241)
Follow
Share
jimK's Opinion
···
08/09/2019
What a completely and totally asinine proposal. The financial services industry contributes mightily to the Republican Party. Months ago, Moscow Mitch had already received $15,000,000.00 in campaign contributions from the financial services industry- around 75% of contributions from all sources at that time. Of course they would like to go back to the days of huge penalties for late payments that compounded with additional penalties for those unable to quickly pay initial penalties- and at loan-shark level interest rates; or issuing pay day loans with unrealistic interest rates. At a higher level they would love to profit by selling the type of worthless packaged investments which led to taxpayer bailout of AGI and other US Industries. Many of their abuses targeted the neediest of people who desperately needed funds and would then become entrapped in an endless cycle of compounding debt and penalties; People without the resources needed to challenge any of these practices. We do not need to further enable an industry- whose only ‘product’ is building wealth by whatever schemes they can come up with- without the meaningful monitoring and oversight provided by the CFPB. I cannot believe the ongoing and completely naked greed of our Republican Senate.
Like (175)
Follow
Share
davidf's Opinion
···
08/09/2019
NO! NO! NO!! The CFPB has been extremely effective in protecting consumers from predatory lending, banking, and financial practices. This fact is why Cruz has introduced this bill and the Republicans have worked so hard to to cripple/destroy this agency. Not only does the CFPB need to be continued, it needs to be strengthened.
Like (117)
Follow
Share

What is Senate Bill S. 1335?

This bill — the Repeal CFPB Act — would repeal the Consumer Financial Protection Act of 2010, thereby eliminating the Consumer Financial Protection Bureau (CFPB).

Impact

Consumers; financial services industry; financial regulation; and the CFPB.

Cost of Senate Bill S. 1335

A CBO cost estimate is unavailable.

More Information

In-DepthSen. Ted Cruz (R-TX) reintroduced this bill from the 115th Congress to eliminate the Bureau of Consumer Financial Protection (CFPB)

“There has never been a greater farce and waste of government resources than the Consumer Financial Protection Bureau, and now is the time to eliminate it. Make no mistake, it does little to protect consumers and was created during the Obama administration to enforce burdensome regulations which have stunted economic growth and negatively impacted small businesses and consumers. I am proud to reintroduce this legislation alongside Senators Lee, Inhofe, Sasse, Rounds, and Blackburn, and urge our colleagues to take this up for a vote in the Senate as soon as possible.”

In a 2017 statement, Sen. Cruz argued that eliminating the CFPB would take a “critical step in the right direction” toward eliminating the “harmful regulatory impositions of Dodd-Frank.” He also said that eliminating the CBPF would “free consumers and small businesses from the CFPB’s regulatory blockades and financial activism, which stunt economic growth.”

Original cosponsor Sen. Jim Inhofe (R-OK) adds that the CFPB is a relic of the Obama administration

“Obama’s administration was all about expanding the size and scope of federal bureaucracy. For almost eight years, the CFPB has held far too much power with virtually no Congressional oversight. I’ve seen how Oklahoma banks are being forced to spend more and more of their time and resources on complying with federal government mandates, and less on their customers—driving up costs for families, small businesses, farmers and ranchers. Eliminating the CFPB is the next step in cutting bureaucratic red-tape for hard-working Americans.”

Some industry groups have also opposed the CFPB from its inception, arguing that it’s too powerful and needs reform.

Opponents of eliminating the CFPB argue that the bureau has helped American consumers by saving billions for middle-class Americans through investigations of consumer complaints and getting refunds when it determines that a financial institution misled its clients. They contend that undermining or eliminating the agency would embolden the financial institutions which were responsible for the 2008-09 financial crisis. In a February 2018 Washington Post op-ed, former CFPB Director Richard Cordray wrote: 

“Over the past few weeks, the administration has dismissed enforcement actions, delayed the payday lending rule and halted the investigation of Equifax. Calling for the CFPB to act with more ‘humility,’ [CFPB’s then-director Mick] Mulvaney has taken up the cause of financial industry cheaters who have done — and continue to do — great harm to the American people… This behavior toward the CFPB — and agencies across Washington — has starkly exposed the falsity of candidate Trump’s grandiose campaign promises about taking on the corrupt interests that prey on working Americans and their families.”

In 2017, U.S. PIRG consumer program director Ed Mierzwinski said

“The CFPB is designed to be the only agency that protects consumers no matter where they do their financial business. Their powers extend to debt collectors, credit bureaus and payday lenders. It’s designed to create fair rules of the road; 29 million consumers have been the beneficiaries of $12 billion in refunds or other relief from the CFPB.” 

Mierzwinski also called Sen. Cruz and Rep. John Ratcliffe (R-TX), who sponsored the House version of this bill in the 115th Congress, “a couple of back-benchers.” With this in mind, he added, “it’s doubtful their legislation moves to the front of the line. This is a message bill from pretty extreme people, so it shows they don’t care about governing.”

This bill has seven Republican Senate cosponsors in the 116th Congress. Last Congress, it also had seven Republican Senate cosponsors and didn’t receive a committee vote. With Democrats controlling the House, it’s unlikely that this bill will pass in the current Congress. In a 2017 Wall Street Journal op-ed, then-House Financial Services Committee Chairman Jeb Hensarling (R-TX) said it wouldn’t be possible to overcome a Democratic filibuster to abolish the CFPB; instead, he called for the agency’s functional termination through budgetary maneuvers.


Of NoteThis is Republicans’ third attempt to eliminate the CFPB in the last few years. Sen. Cruz has led the effort all three times: his first attempt was in 2015, when he introduced a bill that would have eliminated the CFPB, which he termed a “runaway agency” at the time. His second attempt was in 2017. 

The CFPB was established as a new government agency under Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It was the brainchild of now-Massachusetts Senator and 2020 Democratic presidential candidate Elizabeth Warren, who had yet to be elected to the Senate at that point and was then teaching at the Harvard School of Law. That financial reform bill, which was passed in the aftermath of the 2008-09 financial crash, was enacted by congressional Democrats and near-universally opposed by congressional Republicans: only three Senate Republicans and three House Republicans voted in favor of Dodd-Frank. Upon its establishment, the CFPB was made an independent agency charged with reining in deceptive and anti-consumer practices in a range of financial products and services

In 2017, the CFPB was the subject of a federal appeals court ruling that declared its unusual leadership structure — in which its sole Director is appointed by the President and can only be removed from office if the administration demonstrates that the Director has done something warranting dismissal (rather than being fireable at the President’s discretion, as is the case in most other agencies with a sole director-level administrator) — unconstitutional. In the wake of that ruling, a number of consumer advocacy groups, state attorneys general and two Congresspeople (Sen. Sherrod Brown (D-OH) and Rep. Maxine Waters (D-CA), then the ranking members of the Senate Banking Committee and House Financial Services Committee) stepped forward to asking for permission to intervene in the CFPB’s defense

At that time, U.S. PIRG Consumer Program Director Ed Mierzswinski defended the CFPB and then-Director Richard Cordray

“Since 2011, the CFPB has restored order to the financial marketplace, and consumers overwhelmingly support its efforts to rein in abusive practices. Director Richard Cordray has brought much-needed transparency to industries that sorely lacked it, including remittance transfers, credit cards, student loan servicing and payday loans. Interfering with that progress or efforts to roll back important consumer protection provisions will only put our economy and middle class at risk to another financial crisis.”

As of July 2019, both the Ninth Circuit and the D.C. Circuit court had ruled that its structure is constitutional. However, Seila Law has filed a petition for a writ of certiorari with the Supreme Court seeking review of the Ninth Circuit’s ruling.

In 2017, Ballard Spahr LLP attorneys Daniel Delnero and Jeremy Sairsingh noted that eliminating the CFPB would be an “administrative nightmare”

“[A]ctual implementation [of a CFPB elimination] would be an administrative nightmare. All of the rules and regulations passed by the CFPB would have to be unwound, which would require courts, compliance attorneys, and industry to determine what the current state of the law would be had the CFPB never existed. Additionally, the CFPB has entered into dozens of consent orders, almost all of which contain prescriptive injunctive relief. Some of these consent orders were entered into directly with the CFPB, but others were entered by federal courts. Presumably, parties who entered into administrative consent orders with the CFPB would be relieved of their future obligations under them. But the impact on consent orders entered by a federal court is less certain. Those orders are final judgments of an Article III court, and violations thereof are subject to the court’s authority to enforce its orders and judgments. The injunctive provisions of such orders would arguably remain in place, although there might not be another agency or individual with standing to bring a motion to enforce them.”


Media:

Summary by Lorelei Yang

(Photo Credit: Stephen D. Melkisethian via Flickr / Creative Commons)

AKA

Repeal CFPB Act

Official Title

A bill to eliminate the Bureau of Consumer Financial Protection.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
    IntroducedMay 6th, 2019
    The best financial consumer protection is the free market and personal responsibility.
    Like (35)
    Follow
    Share
    ARE YOU EFFING KIDDING ME?!?! I knew as soon as I read the title that it was a Republican bill. That’s bleeping insane. NO!!!! Do not remove consumer protections!! God you people are awful! Republicans always try and wreck the economy right before they lose power.
    Like (241)
    Follow
    Share
    What a completely and totally asinine proposal. The financial services industry contributes mightily to the Republican Party. Months ago, Moscow Mitch had already received $15,000,000.00 in campaign contributions from the financial services industry- around 75% of contributions from all sources at that time. Of course they would like to go back to the days of huge penalties for late payments that compounded with additional penalties for those unable to quickly pay initial penalties- and at loan-shark level interest rates; or issuing pay day loans with unrealistic interest rates. At a higher level they would love to profit by selling the type of worthless packaged investments which led to taxpayer bailout of AGI and other US Industries. Many of their abuses targeted the neediest of people who desperately needed funds and would then become entrapped in an endless cycle of compounding debt and penalties; People without the resources needed to challenge any of these practices. We do not need to further enable an industry- whose only ‘product’ is building wealth by whatever schemes they can come up with- without the meaningful monitoring and oversight provided by the CFPB. I cannot believe the ongoing and completely naked greed of our Republican Senate.
    Like (175)
    Follow
    Share
    NO! NO! NO!! The CFPB has been extremely effective in protecting consumers from predatory lending, banking, and financial practices. This fact is why Cruz has introduced this bill and the Republicans have worked so hard to to cripple/destroy this agency. Not only does the CFPB need to be continued, it needs to be strengthened.
    Like (117)
    Follow
    Share
    The one agency that protects We The People please leave it alone.
    Like (87)
    Follow
    Share
    Seriously? Please stop tearing down protections for citizens in the interest of big corporations. Have some sort of moral compass! The middle class and the marginalized are the ones suffering as government lines the pockets of the wealthy and big businesses. WAKE UP.
    Like (81)
    Follow
    Share
    Protect the people not big business.
    Like (80)
    Follow
    Share
    Protect the consumer, not big business!!
    Like (45)
    Follow
    Share
    WTF? Protecting consumers from corporate theft is supposedly the job of the entire government. However, since it has become a graft filled den of corruption the consumer protection Dept must be protected!
    Like (42)
    Follow
    Share
    The consumer financial protection organization is absolutely necessary in today’s business climate. Even more important due to changes in trade and the relaxation’s in other standards that are being put in place by Republicans. This organization should not only be preserved, but funded more heavily.
    Like (33)
    Follow
    Share
    No, American need more save Guards Against Cyber threats and Consumer protections.
    Like (31)
    Follow
    Share
    No! Don’t take protections of predatory corporations away from helping we... the cirizens. Although, it does NEED to be strengthened, it is a weak agency or MANY MANY more would not be able to be in business, or be doing the practices thet do.
    Like (25)
    Follow
    Share
    Absolutely NOT they get the bad guys off the street
    Like (24)
    Follow
    Share
    Absolutely NOT! You People will take away EVERY DAMN PROTECTION WE HAD IN ORDER TO CONTINUE TO MAKE YOUR DONORS HAPPY and your citizens even more subservient. You are the scourge of the earth. I pray you ALL will be gone in 2020.
    Like (20)
    Follow
    Share
    It's already been proved that financial institutions will do whatever they're allowed to when it comes to making money at the expense of their customers and the country. This is a blatant attempt to once again let a few people get even more rich at the expense of everyone else.
    Like (19)
    Follow
    Share
    I knew it had to be Ted Cruz. Have you seen Ted Cruz on “”The Cartoon President?” Those crazy eyes. Without the EPA, our water will be undrinkable, we’ll have to wear gas mask and hazmat suits. The ground will be so poison that you can’t grow crops. And as far as the FPB, it end would be a “free for all” for crooks. Remember Barry Maydoff. You might as well let him out of jail.
    Like (17)
    Follow
    Share
    No! Why do the republicans always want to destroy something that protects the public? They hate health care so they want to destroy the ACA, they hate employee protections so they eliminate laws that protect from dangers in the workplace, they hate protecting consumers so Terrible Ted wants to do away with the agency that was created to help consumers being preyed upon. They do the bidding of their corporate overlords in return for campaign contributions because the republicans only care about one thing: Power
    Like (16)
    Follow
    Share
    Remove those who want to repeal cfpb!
    Like (16)
    Follow
    Share
    Absolutely not! Consumers need protection from predatory lending & business practices! Just look at why the bureau was created in the first place ... to protect consumers after the banks tanked our economy with their unethical practices! Legislators need to focus more on what is best for ALL of their constituents, not just the ones with the most money!
    Like (16)
    Follow
    Share
    I’m not surprised that this is Ted Cruz’s brain child. Who else would come up with such a stupid, moronic, idiotic, brainless, absurd idea. So that would be a “NO”. And while we’re at it: IMPEACH NOW
    Like (16)
    Follow
    Share
    MORE