Bill Proposed to Restructure and Rename the CFPB
Republican Congressman Randy Neugebauer from Texas has proposed a new bill that will restructure and rename the Consumer Financial Protection Bureau. While other bills of this nature have failed to pass Congress, this proposal seems condensed enough to stand a chance at succeeding.
Neugebauer’s bill is designed to transform the CFPB into a commission, led by a five-person bipartisan committee. Currently, the Bureau is headed by one man, Director Richard Cordray. The bill would adjust the pay scale for executives, and rename the organization to the Financial Product Safety Commission.
“Over the last several years, the Bureau’s actions and record have proven it can’t function in a sustainable manner,” Neugebauer said in a statement.
Neugebauer, the Chairman of the Financial Institutions and Consumer Credit Subcommittee, feels the CFPB has demonstrated a lack of transparency and accountability, in part due to the Bureau’s current structure.
“To better serve the American people, the Bureau must adopt a more balanced and consultative process to its rulemaking,” he said.
Past bills with a similar mission were too broad in their scope to gain much traction. This one has been stripped to the bare essentials, and with the Republicans now controlling the Senate, its support could be much stronger. Nevertheless, there is also plenty of opposition to the bill. More than 300 consumer interest groups have sent in a letter defending the CFPB’s current structure and the work it has done so far.