WASHINGTON—Saying the CFPB’s current structure “concerns me,” Rep. Andy Barr (R-KY) told NAFCU’s Congressional Caucus the issue is top of mind for him.
After thanking credit unions for supporting businesses during the pandemic through he Paycheck Protection Program (PPP), Barr turned to “an important topic that is likely at the forefront of all your minds,” stated Barr, who is the ranking member of the House Financial Services Committee's Subcommittee on Oversight and Investigations. “I am paying close attention to oversight of the CFPB, and I take this responsibility very seriously. That's why the CFPB’s current funding structure concerns me.
“Several congresses ago, I introduced legislation that I called the Taking Account of Bureaucrats Spending Act, or the TABS Act, to keep tabs on bureaucrats’ spending,” continued Barr. “This bill would bring the CFPB under the Congressional review process and give you common sense legislation. It was passed by the House when Republicans had the majority but has had some challenges in the current environment.”
A ‘Rubber Stamp’
Barr said that in his current capacity as ranking member of the Oversight and Investigations Subcommittee, he requested the Federal Reserve’s inspector general conduct an audit of how the CFPB requested funds and what the approval process looks like.
“And, as I suspected, it's basically a rubber stamp, and the Dodd-Frank Act created it that way and made them totally unaccountable,” Barr said. “As many of you are aware the Supreme Court (in the Selia Law case) found that the leadership structure of the CFPB, where the single director can be removed only for cause, violated separation of powers. While I certainly agreed with that decision and joined in an amicus brief with my fellow financial services committee Republicans in support of that outcome, (former CFPB Director) Kathy Kraninger’s departure was a loss.”
More Can Be Done
But Barr told the meeting more can be done to improve the leadership structure of the CFPB besides just making it more accountable to the president.
“We need to bring more accountability, and we can do so by making it accountable also to Congress,” he said. “HR 4773 (Consumer Financial Protection Commission Act sponsored by Blaine Luetkemeyer, R-MO) would replace the current single director leadership structure with a five-member bipartisan commission. The structure is similar to the SEC and other agencies and would still give the party controlling the White House majority votes. This is a common-sense measure that would bring deliberation and coordination. It would provide some durability and continuity to the CFPB’s policies, and bring some meaningful and accountability.”