CHICAGO—A member of the House Financial Services Committee Wednesday described the CFPB as “bureaucracy gone wild,” and emphasized that the Bureau needs to be held accountable to Congress for its actions and decisions.
HFSC member Randy Hultgren (R-IL) offered that viewpoint during the 2016 NASCUS State System Summit when asked by former NCUA Chairman Michael Fryzel, who was sitting in the audience, if anything can be done to bring the CFPB under the control of Congress and “answerable to American constituents.”
“I am optimistic,” said Hultgren that changes could be made next year by Congress, adding that the CFPB has been acting without needed accountability cresting a level of bureaucracy and red tape that is harming credit unions.
“In this world, everyone needs accountability,” said Hultgren. “What we are seeing with the CFPB is a level of arrogance that is not healthy and it is hurting credit unions. The CFPB is losing site of the needs of consumers and I see (the actions of the CFPB) as agenda driven. It is costly and it is simply piling on.”
Hultgren added that the HFSC is well aware of the stories of how small credit unions are merging out due to increasing regulatory demands. “Ultimately, the person who pays the price is the member,” he said.
Hultgren asked for even more credit union support to help place pressure on Congress to stand up for credit unions and community banks.
“There should be recognition (from the CFPB) that credit unions and community banks are different that the huge Wall Street banks, especially different in risk, and see if we can spare smaller financial institutions from the avalanche of rules for which they are accountable.”
Hultgren said he does think that the outcome of the presidential election will have an impact on whether the CFPB can be made accountable to Congress.
“The election does matter,” said Hultgren, not openly saying which candidate he predicts will win or would make the necessary changes. “But there should never be this agency that is not held accountable to anyone, one that creates all this bureaucracy. I have read through the Constitution, and nowhere in it do I see the CFPB. Congress needs to rein them back in.”