WASHINGTON—The Transparency in CFPB Cost-Benefit Analysis Act, which would require the Consumer Financial Protection Bureau to conduct a cost-benefit analysis and other procedures as part of any rulemaking activity, has been re-introduced by Sen. John Kennedy (R-LA).
The legislation was also introduced previously in both the Senate and the House but did not pass. It has the support of credit union trade groups.
“We thank Sen. Kennedy for introducing this bill that would bring needed accountability and transparency to the CFPB,” said CUNA President/CEO Jim Nussle. “The entities subject to the Bureau’s rules and regulations deserve an honest breakdown of costs and benefits, information that will also be beneficial to consumers, lawmakers, and small businesses.”
‘No Justification’
Added Lacey Weaver, senior vice president with the Louisiana Credit Union League, “We applaud Sen. Kennedy’s leadership in introducing the league-supported Transparency in CFPB Cost-Benefit Analysis Act. Regulations established by the CFPB are not only burdensome to implement but carry unreasonable compliance costs with no justification in the rulemaking process. This proposed legislation addresses the short-sighted processes by regulators and the excessive costs that are ultimately passed down to the consumer.”
The Specifics
Specifically, the bill would require the CFPB to publish along with any rulemaking:
- A statement of need for the regulation
- An examination of why the private market or other authorities cannot address the problem
- An examination of whether the proposal is duplicative or inconsistent with other federal regulations, and additional justifications if it is
- An assessment of all anticipated direct and indirect costs and benefits of the proposed regulation
Senator Will Not Seek Re-Election
Separately, Sen. Ben Cardin (D-MD) announced he will not run for re-election in 2024.
Cardin—chair of the Senate Small Business Committee—has served in the Senate since 2007, prior to that he served in the House representing Maryland’s 3rd congressional district starting in 1987.
“Sen. Cardin helped put credit unions in position to serve small businesses through the pandemic with the Paycheck Protection Program and has been a friend to credit unions throughout his impressive career,” said CUNA President/CEO Jim Nussle in a statement. “We congratulate Sen. Cardin on more than five decades of public service and wish him and his family the best.”
Added said MD|DC Credit Union Association President/CEO John Bratsakis, “We want to thank Sen. Cardin for his decades of dedicated public service and strong support of credit unions. He has been a champion for our movement and members. During the pandemic, Sen. Cardin co-sponsored the bill creating the Paycheck Protection Program and ensured $10 billion in PPP funding was reserved for Community Development Financial Institutions. In 2018, Sen. Cardin entered a statement into the permanent Congressional Record recognizing the vital role credit unions play in Maryland and DC communities. We look forward to continuing to work with Sen. Cardin as he completes his term in the U.S. Senate.”
Support for PPP
Cardin also supported legislation to extend the deadline to apply for Paycheck Protection Program loans and maintained the credit union tax status while chairing a working group on tax reform in the 114th Congress, CUNA noted.
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