The House of Representatives today approved the Financial CHOICE Act, which would dramatically overhaul the Dodd-Frank Wall Street Reform and Consumer Protection Act and significantly reduce the powers and authority of the Consumer Financial Protection Bureau.
The bill now moves to the Senate for approval. If passed in the Senate, it would go to the President for his signature or veto.
Among other things, the Financial CHOICE Act would give the president the power to fire the director for any reason, not just for cause as is currently the case. The CFPB’s budget would also have to be approved by Congress instead of being secretly folded into the budget for the Federal Reserve Board, and the agency would no longer be able to issue rules, like the debt collection rule it is currently working on.
The bill was authored by Rep. Jeb Hensarling [R-Texas], chairman of the House Financial Services Committee. He attempted the legislation during the most recent Congressional session but was not able to advance the bill.
The House approved the bill largely along party lines.
