A number of Senate Republicans, including Sen. Tim Scott [R-S.C.], the Ranking Member of the Senate Banking Committee, are introducing legislation that would place the Consumer Financial Protection Bureau under the congressional appropriations process.
The Senate Banking Committee and House Financial Services Committee each held their semi-annual hearings this week with Rohit Chopra, the director of the CFPB, and the topic of how the Bureau is funded came up in both hearings. The Supreme Court ruled last month that the way in which the CFPB receives its funding — directly from the Federal Reserve Board and not through the appropriations process like most government agencies — is constitutional.
The bill, called the Consumer Financial Protection Bureau Accountability Act is cosponsored by Sen. Bill Hagerty [R-Tenn.], Sen. Mike Crapo [R-Idaho], Sen. Mike Rounds [R-S.D.], Sen. Thom Tillis [R-N.C.], Sen. John Kennedy [R-La.], Sen. Cynthia Lummis [R-Wyo.], Sen. Katie Britt [R-Ala.], Sen. Kevin Cramer [R-N.D.], and Sen. Steve Daines [R-Mont.].
“Under Director Chopra, the CFPB continues to brush aside congressional concerns, forge ahead with political agendas, and push past the boundaries of its authority – all to the detriment of the consumers it’s supposed to protect,” said Sen. Scott in a statement. “By subjecting the CFPB to the congressional appropriations process, this legislation will increase accountability and help Congress ensure the agency stays true to its mission.”
In April 2023, Scott led eight Republicans in a letter to Director Chopra, criticizing the CFPB’s approach to regulating financial incentives, which they argued would harm the cost and availability of credit for American consumers. Scott has also been vocal against the CFPB’s credit card late fee rule, finalized in March, which caps late fees at $8. He introduced a measure to overturn this rule, arguing it would reduce the availability of credit card products, raise rates for timely borrowers, and increase the likelihood of late payments.
Despite expressing disappointment with the ruling, Scott reaffirmed his commitment to holding the CFPB accountable and countering what he sees as its politically driven agenda.
