WASHINGTON—Rep. Andy Barr (R-KY) has reintroduced legislation that would subject the Consumer Financial Protection Bureau to the traditional congressional appropriations process.
Currently, the CFPB is funded directly from the Federal Reserve, resulting in a lack of proper oversight from Congress, America’s Credit Unions noted.
The Defense Credit Union Council applauded Barr (R-KY) for introducing the legislation (H.R. 654).
“We have consistently urged Congress to bring necessary reforms at the CFPB, especially in response to growing concerns about the agency's overreach,” said Jason Stverak, DCUC Chief Advocacy Officer. “This proposed legislation represents an important step toward establishing appropriate regulatory processes that enhance efficiency, ensure fairness, and support all financial institutions.”
ACU Thanks Barr
“America’s Credit Unions thanks Rep. Barr for introducing this critically important legislation,” said Jim Nussle, America’s Credit Unions president/CEO. “We have long advocated for significant reforms to the CFPB, sounding the alarm to rein in actions that overstep its authority. The TABS Act would bring needed accountability, oversight, and transparency to the agency. We will continue to advocate for appropriate regulations that support a thriving credit union industry. America’s Credit Unions, together with leagues and credit unions, looks forward to working with lawmakers to bring needed reforms to the CFPB.”
DCUC Letter
DCUC’s letter sent last month outlined several concerns related to the CFPB’s regulatory processes and actions while providing recommendations for structural reform. In the letter, DCUC said it believes that structural reforms to the CFPB are critical to ensuring its accountability, transparency, and balanced oversight of the financial sector. The trade association recommended:
- Establishing a Five-Member Commission: Replacing the single-director leadership model with a bipartisan five-member commission would promote greater stability, continuity, and collaboration in CFPB policymaking. This structure, used successfully by other financial regulators, would mitigate abrupt policy swings and ensure diverse perspectives in decision-making.
- Placing the CFPB Under the Congressional Appropriations Process.
“We look forward to collaborating with Congressman Barr and his staff on this critical legislation and other initiatives that foster the growth and sustainability of the credit union industry,” said Stverak.