Senator Ted Cruz Introduces Bill to Abolish the CFPB

The Consumer Financial Protection Bureau (CFPB) celebrated its fourth birthday on July 21. As a present, two Texas congressmen introduced a bill to abolish the federal agency, one of whom was U.S. Senator Ted Cruz (R).

Cruz, along with Representative John Ratcliffe (R-Texas-04) introduced legislation to eliminate the CFPB, saying that the agency, like the Dodd-Frank legislation that created it, is just another example of the “cronyism that infects” Washington, D.C., according to a joint-statement from Cruz’s and Ratcliffe’s offices.

The congressmen claim that the CFPB has had the opposite effect from what it was originally intended to do, stating that now five years after the passage of Dodd-Frank, big banks have only become bigger and the number of smaller banks have only decreased.


“Don’t let the name fool you, the Consumer Financial Protection Bureau does little to protect consumers,” said Cruz in a written statement. “The agency continues to grow in power and magnitude without any accountability to Congress and the people. The only way to stop this runaway agency is by eliminating it altogether.”

Ratcliffe cites stories from community banks in Texas having to choose between closing their doors or consolidating into larger institutions to handle compliance costs set forth by the CFPB. 

“The CFPB’s regulatory zeal has stripped American consumers and businesses of their freedom of choice and has limited their access to capital—all in the name of a ‘we know best’ attitude from Washington,” stated Rep. Ratcliffe. 

The CFPB has ofttimes come under fire from lawmakers and the financial services industry for a variety of reasons, whether due to arguably stringent regulations, enforcement actions, or the fact that the agency is not subject to the congressional appropriations process for its budget.

Several bills have already been introduced this year alone in efforts to bring more accountability to the CFPB. And now, Cruz’s and Ratcliffe’s legislation joins the pool of lawmakers who press that the CFPB has indeed gone “rogue.” None, however, have made any significant progress.

“While there’s much more to do to scale back the harmful regulatory impositions of Dodd-Frank, this legislation takes a critical step in the right direction,” Cruz stated. “So today let’s celebrate the CFPB’s fourth and final anniversary.”

Written by Jason Oliva

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  • Senator Cruz needs more name and positions recognition in order to be seen as a serious Presidential candidate. Due to other political concerns such as the Iran nuclear deal, this bill could pass but would not survive Presidential veto.

  • If I remember correctly the principal objective for establishing the CFPB was to “consolidate the patchwork of regulatory agencies” into just ONE such agency to simplify accountability and compliance. It appears to me that nothing has changed except the addition of yet another layer of regulatory oversight, thereby exacerbating the very problem the agency was supposedly created to eliminate. I guess some things never change.

  • Does he have to be running for POTUS to express his opinion on the CFPB overreach? Last time I looked he is a Senator for a state that by itself has the 14th largest economy in the world.

    • HitmanNBigD,

      A bill is far more than an opinion.

      The economy in the state you mention does well when OPEC is doing well. Very few states can say that. Thank goodness it is not the largest state economy in the US.

      If this was more than a political stunt, why would he sponsor it since he has done everything he can to offend not only the Democrats in Congress but also the establishment Republicans. Where is sponsorship of the bill outside of his own state? I would not expect bipartisan support in anything Cruz does.

  • Senator Cruz is right in what he is trying to attempt to accomplish, whether he will ever get it through is a horse of a different color?

    I personally have watched closely the CFPB since the “Financial Regulatory Reform Bill” (Dodd-Frank) passed back in 2010.

    The CFPB has done just the opposite in the area of protecting the consumer, the name given to the CFPB alone is misleading.

    Since the CFPB has come into existence we have seen more Federal Regulations come down on the banking and landing industry than we ever have in the 46 years I have been in mortgage banking.

    We have seen many small community banks fail as well as mortgage companies and many small businesses fail around the country, mainly because of the regulations the CFPB has imposed on the entire financial industry. Small businesses rely on their community banks to be there for them, when they can’t support their needs, businesses fail.

    Please, don’t go by what I am saying, read the bill for yourselves, I have read it. Not only is it very ambiguously written but as you read real hard into the bill you will see how much control the CFPB has over our entire financial system, lending, your personal accounts ETC. Read the bill my friends, you be the judge , I feel it is out right scary!
    The bill itself in my opinion needs to be repealed and the CFPB done away with. Once those that want to read the entire bill, I doubt that anyone will disagree in what Senator Cruz and I just spelled out!

    Please don’t take this comment as my supporting Senator Cruz for the Presidency, on the contrary. However, on this issue, which unfortunately, Cruz will never get through and passed by congress, he is exactly right!
    John A. Smaldone

    • John,

      What you are saying is right position, wrong man. On that few disagree. The problem is he is spoiling the broth for those who might have an inkling of a chance to do something about it after Obama is back home organizing.

      I would add to your conclusion that not only is it the right cause, wrong man, but it is bad timing for everyone but Ted.

      • The_Cynic, I don’t disagree with you at all, you are 100% right about the man!

        However, I don’t feel there is such a sentence that should say, it is a bad time to try and repeal the “Financial Regulatory Reform Bill” (Dodd-Frank Bill), which will automatically do away with the CFPB.

        There should be a proposal to repeal this bill put before congress at least once a month, even though the chances are almost assured of being vetoed. I don’t really care who submits a repeal order, just as long as it continually goes before congress and the American people!
        Let Obama veto the proposed bill every time, maybe one of these times there just may be enough votes to override a veto, even though I doubt that will happen.

        Cynic, the American people need to know just how much of an impact this bill and the CFPB has had on their lives. They also need to know their lives will be impacted even more in the future if this bill continues to remain on the books!

        I know you are right that what Cruz is doing is only for his own gain, if it wasn’t, he would have done something about it many times over the past 5 years. So should a lot of politician’s done something about the bill but they did not, unfortunately!

        I apologies for ramping on so but this bill and the CFPB has been a project for me since its inception, I just wish I was heard the way I hoped I would have been heard. I wish one of our great politicians had the guts to go after it the way it should have been.

        I appreciate you listening to me Clynic, have a great evening.

        John A. Smaldone

      • John,

        Going after the CFPB a couple of times is understandable but continual legislation to terminate the CFPB only makes the Republican Congress look ineffective, impotent, and non-productive.

        If there is a chance of an override of a Presidential veto as to the total annihilation of the CFPB, many in the House and Senate would rise up to sponsor that Bill in hours, if not minutes, of detecting such an opportunity.

        Obama will be in office for less than eighteen months. I hope that like the Obama Administration had two years to do anything it wanted in Congress, a Republican President will have a Republican controlled House and Senate and that they can repeal most of the Dodd-Frank Act, Affordable Care Act, and other Acts passed in the last six and one-half years along with many of the numerous Obama administrative actions.

        Doing much now is all but self-defeating and could be far more counterproductive to a Republican Congress that needs to at least hold its present lead in House in the upcoming elections and elect more Republican Senators.

      • The_Cynic,

        I have been a Republican all my life, I am on the Republican Parties Executive committee.
        The point I am getting at is many fold. First off, to eliminate the CFPB we must eliminate the “Financial Regulatory Reform Bill” (Dodd-Frank) ASAP, of which I have lobbied against since its passage in 2010. We know that will not happen but how many times has this Republican controlled house and senate placed repeal bills before congress, not to many. If they continued to submit the bill and our immortal leader kept vetoing the bill, the press and the American people would sure start knowing what the you know what is going on for a change!!
        Secondly, in 18 months this President and his key people in his administration can destroy this country and the American way of life! Every day ids another day we increase our depth and destroy our standings in the world as well as our military strength. Time is our greatest enemy!

        Third time around, doing nothing right now is self defeating my friend. The Republican Party has had since 2012 to make a great deal of noise and work hard to sway Democrats over to their side on some bills, if submitted, just might of passed.

        They have done little to change the collision course we are heading on. I have made my position very clear to the RNC and the Republican Party. They have been divided, they have not learned from the past and they have been a do nothing Party!!

        I am sorry, I could go on a lot more but I know I have said enough. This is no offence to you Cynic, you I have respected and agreed with probably more than anyone but this subject is one that needs to be talked about and talked about.

        I may not be able to change the tide but I am sure trying to make a difference in some way shape or form.

        I have a “Federal Government Reform Bill” proposal in the form of a petition that I have poured my heart into for the past 2 1/2 years. The proposed bill contains 14 legislative demands, which this is what the petition stands for. I have one US senator and one US congressman that is willing to clean it up and present it to congress, their requirement is for me to get 100,000 petitions filled out and verified under Federal Guide lines.

        I am still over 23,000 petitions short after 2 1/2 years. Why, because it takes about an hour and a half to go through the entire website and read each of the 14 legislative demands.

        My dear friend, people do not want to take the time to read something that could be their salvation. I am not saying my proposal is that salvation but this is what we as a nation of people have evolved into!!

        I am going to ask you to go to the website and take your time to go through it all because what I know about you through our comments back and forth is that you are a patriot and you are a passionate person. The website is:

        Let me know your honest opinion, I will respect it. You make it a great weekend and again, my apologies for rambling on so.

        All my very best,

        John A. Smaldone

      • John,

        I made several attempts at trying to get to the link and failed each time.

        Have a great weekend, John.

      • I can.t understand that one, try:
        See if that works? I appreciate you letting me know. Make it a great Monday and let me know if you still can’t get into it? I do know that at the end of the week, there were problems on my website host’s end but I thought it was cleared up? let me know, I will appreciate you for it.

        Take care,


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