Paul claimed in the address that while proponents say the CFPB will bring enhanced protection to consumers, it will only “expose consumers to more financial harm…by encouraging them to use only products that have been approved by the bureau.”
He further claimed the the CFPB’s structure allows it to be run by “unelected, unaccountable bureaucrats with no effective oversight from Congress.” Paul also SAID that the “poor reputation” of Wall Street banks and firms that resulted after the 2008 financial collapse was the catalyst for the agency’s creation.
Paul is just one of many CFPB opponents who claim not only that President Obama’s appointment of the director was unconstitutional, but that the bureau itself is unconstitutional, as it answers to no other government entity.
President Obama installed Richard Cordray as director to the bureau last month, along with three other individuals to the National Labor Board. Since then, critics of the administration have called the recess appointments unconstitutional, though a legal office for the Department of Justice supported the president’s move in a memo last month.