Following earlier releases indicating what House Republicans would propose in their plan to overhaul the Dodd-Frank Wall Street Reform and Consumer Protection Act, more detail has been made available on the plans for the proposed changes, with a full update expected by the end of the month. The anticipated changes include substantial modifications to the financial law and to the Consumer Financial Protection Bureau’s leadership and role. Comments this week represent the first time Rep. Jeb Hensarling (R-Tex.) and his staff have placed a definitive timeline on a release of the proposal.
Among the changes outlined, a new version of The Financial CHOICE Act drafted by the House Financial Services Committee would rename the CFPB to become the “Consumer Financial Opportunity Commission,” and the agency would be tasked both with consumer protection and competitive markets. In place of its current leadership structure, which includes a single chief, the Bureau would have a five-member, bi-partisan commission for its leadership, subject to congressional oversight and appropriations.
Long criticized by financial services industry members and House Republicans for its unprecedented power and massive database of consumer information, the proposal involves requiring permission before collection personally identifiable information on consumers and repealing the agency’s authority to ban products and services its deems “abusive.”
The committee’s description of the agency describes the CFPB as an enforcement agency only, without supervision functions—a drastic shift from its current role in supervising bank and non-bank financial institutions.
President Trump has referenced overhauling the legislation, notably in February when he signed an executive order to regulate the U.S. financial system. More recently, the president spoke of drastic changes Tuesday, as reported by The Hill, in stating Republicans are working on “a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many.”
A comprehensive draft of the The Financial CHOICE Act is expected “in the next few weeks,” according to statements made to the press by a spokeswoman for Rep. Hensarling.
Written by Elizabeth Ecker