Today, the House Financial Services Committee convened a hearing led by Subcommittee Chair Andy Barr to discuss the regulatory and legal framework surrounding federal consumer financial protection. The session focused on the structure and funding of the Consumer Financial Protection Bureau (CFPB).
In his opening remarks, Barr expressed enthusiasm for leading the subcommittee during an administration that he believes understands the costs of overregulation. He criticized what he described as excessive oversight by the CFPB under former Director Chopra, which he claimed prioritized politics over sound policy.
“The good news is that a new era has begun under President Trump,” Barr stated, emphasizing a shift towards encouraging businesses to offer financial services in a competitive and safe manner. He highlighted a move towards transparency and fairness at the CFPB.
Barr pointed out structural issues within the CFPB that he believes have led to reduced accountability and stifled innovation. He advocated for transitioning the CFPB to a bipartisan commission subject to congressional appropriations, mentioning his reintroduction of the TABS Act to ensure Congress has control over its budget.
He also addressed concerns about civil investigative demands (CIDs) used by the CFPB under Chopra’s leadership, describing them as overly burdensome on financial service providers. In response, Barr introduced the CID Reform Act aimed at imposing limitations on CIDs.
Additionally, Barr criticized the undefined nature of “abusiveness” in UDAAP authority under Chopra, comparing it to Supreme Court Justice Potter Stewart’s threshold test for obscenity. He introduced the Rectify UDAAP Act to provide clarity and encourage financial service providers’ confidence.
Barr concluded with his belief that “the best consumer protection is consumer choice,” advocating for a transparent CFPB that promotes competition and benefits American consumers.
