CFPB Reform Bills Pass in House Financial Services Committee

Two bills seeking to reform the Consumer Financial Protection Bureau (CFPB) passed in the House Financial Services Committee on Wednesday with bipartisan support.

“Consumers are understandably concerned about our economy," Committee Chairman Jeb Hensarling said. "We remain stuck in the worst recovery of the last 70 years. At the same time, they’re concerned that Washington is taking away their choices and raising many of their costs. Our committee has the privilege—and responsibility— to fight for them.  Because every American—regardless of which side of the tracks they grew up on, regardless of how humble their circumstances may be—has the right to shape their own destiny; has the right to economic freedom and choice; and has the right to expect that Congress will work to build a healthier economy with more opportunities. Our committee has already guided 41 bills through the House this year, but we still have a lot of work to do."

H.R. 957, known as the Bureau of Consumer Financial Protection-Inspector General Reform Act of 2015 and sponsored by Steve Stivers (R-Ohio), passed in the Committee by a vote of 56-3. This bill would create an independent inspector general for the Bureau who is nominated by the president and Senate-confirmed.

"Government accountability is important now, more than ever," Stivers said. "This legislation will allow for increased oversight of an agency that has been given broad authority. It is important that we take the necessary steps to ensure the CFPB is accountable to the American people."

"Our committee has already guided 41 bills through the House this year, but we still have a lot of work to do."

H.R. 1266, known as the Financial Product Safety Commission Act of 2015 and sponsored by Randy Neugebauer (R-Texas), would remove the CFPB from the Federal Reserve System and re-establish it as a stand-alone agency governed by a five-member, bipartisan commission. This bill passed the Committee by the vote of 35-24.

"After months of productive conversations with my colleagues from both sides of the aisle, I’m pleased the Committee acted today and in a bipartisan manner to move this CFPB commission bill forward," Neugebauer said. "By changing the leadership structure, we can ensure the Bureau is more accountable, transparent and shielded from the whims of political change and partisan politics. I look forward to continue working together to gain additional support and move this common sense bill through Congress."

Three other bills designed to protect consumers and build a healthier economy passed in the Committee on Wednesday. Click here to see the complete list.