CFPB Director Testifies Before Congress
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified before the House Financial Services Committee yesterday. Members of the committee took the opportunity to address concerns over the Bureau’s use of a long dormant power that allows it to examine nonbank companies that it believes pose risks to consumers.
Republicans took control of the House in November’s elections meaning they will also control the Financial Services Committee in the new Congress.
Members of the committee expressed frustration with the Bureau’s current use of bulletins, advisory opinions and interpretative rules.
“You’ve put forth just one ‘real’ rule through notice and comment,” Rep. Patrick McHenry (R-NC), the incoming chair of the committee said. “Meanwhile, you have issued six compliance bulletins, five advisory opinions, five interpretive rules, and just this year, seven circulars.”
Chopra defended the Bureau’s use of guidance noting it is designed to avoid “regulation by enforcement.”
December 15th, 2022
