The Consumer Financial Protection Bureau (CFPB) is a core component of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In 2012, President Obama appointed Richard Cordray to be the first director of the CFPB – the first-ever regulator that only protects financial consumers. The mission of the CFPB is to establish and enforce clear rules for financial institutions, develop consumer protections and disclosure regimes, and prevent any destructive behavior that contributed to the financial crisis in 2008. The CFPB works to provide consumers with information to aid their understanding of their agreements with financial companies.
H.R. 1195 is the Bureau of Consumer Financial Protection Advisory Boards Act. H.R. 1195, as reported by the House Financial Services Committee, would require that the director of the CFPB establish a Community Bank Advisory Council, a Credit Union Advisory Council, and a Small Business Advisory Board to assist the CFPB with information regarding consumer financial protection. Although the administration does not oppose this passage, it does, however, oppose the amendment to reduce the amount of funding that may be requested by the CFPB for fiscal years 2020 and 2025. The funding for the CFPB is already capped by law – so this lower cap is intended to create a negative effect on the CFPB’s ability to carry out its mission.
Moreover, the CFPB already convenes a Community Bank Advisory Council and a Credit Union Advisory Council, which share the perspectives of the policy behind the CFPB – and it already includes a range of stakeholders. Thus, the passage of this bill could be problematic, and if the president were presented with H.R. 1195, as amended, his senior advisors would recommend that he veto the bill.
Click here to view the Statement of Administrative Policy.