HFAC Chairman Bachus says CFPB lacks oversight, transparency

Spencer Bachus

Chairman Spencer Bachus of the House Financial Services Committee said on Thursday in regards to a legal challenge to the Consumer Financial Protection Bureau that the agency has too much power.

“There is no question the Consumer Financial Protection Bureau—by the design of Dodd-Frank Act supporters—lacks accountability and transparency,” Bachus said in a statement. “As it is currently structured, the CFPB is one of the most powerful and least accountable agencies in all of Washington. Everyone supports consumer protection, but everyone should also support real oversight and accountability of massive government bureaucracies, and that includes the CFPB.”

Bachus introduced legislation approved by the House that would institute a five member, bipartisan panel to lead the CFPB. Bachus said that the “common sense” reforms would ensure the integrity of the system of checks and balances.

“A bipartisan commission would help ensure that CFPB rules are balanced, fair and reasonable,” Bachus said. “It also promotes continuity in rule-making by preventing a new director from unilaterally reversing the decisions made by a previous director. This is a structure that has worked well for nearly every other regulatory body in this country and will work for the CFPB.”

The CFPB was established under the Federal Reserve by the 2010 Dodd-Frank Act. CFPB Director Richard Cordray has sole authority over the agency and its budget, as well as the authority to decide which financial products and services are safe for America’s consumers.