GOP Sens. Try to Rein In Obama’s Unaccountable Consumer Financial Protection Bureau

‘If we have a case involving things people really shouldn’t have been doing, bring the case, right the wrong, and if a judge tells us we can’t, fine…’

House Votes to Repeal Onerous Dodd-Frank Law

Barack Obama signs the since-repealed Dodd–Frank financial reform bill. / IMAGE: YouTube

(Kaylee McGhee, Liberty Headlines) Sen. David Perdue, R-Ga., is helping lead an effort in Congress to hold the Consumer Financial Protection Bureau accountable and restore Congress’s most important responsibility—the power of the purse.

The CFPB—originally proposed by 2020 presidential candidate Sen. Elizabeth Warren, D-Mass.—was created under the Dodd–Frank financial reforms and has been allowed to run with “little to no accountability,” Perdue said.

The agency oversees consumer protection in the financial sector, focusing on banks, credit unions and other U.S. firms. Under the Obama administration, the CFPB was allowed to act without restraint, which was a “total disaster,” President Donald Trump said on Twitter.

A federal judge ruled in 2017 that the CFPB director had such “enormous executive power” that the agency’s structure violated the Constitution, according to Politico.

Trump took the agency to task, replacing its original director Richard Cordray with then-White House Budget Office Director Mick Mulvaney, now the president’s chief of staff.

Cordray admitted he had stretched his position’s authority as far as he possibly could to protect consumers from scams and made no apologies for the bureau’s far-flung efforts to rein in college accreditors and payment processes.

“I’ve never had any qualms about telling our people, if we have a case involving things people really shouldn’t have been doing, bring the case, right the wrong, and if a judge tells us we can’t, fine,” Cordray told Politico. “There are a lot of bad things that need to be addressed and we shouldn’t shy away just so we could have a perfect won–loss record.”

Trump’s current CFPB director, Kathy Kraninger, has brought transparency to the agency, but it still must be held accountable, said Perdue, a member of the Senate Banking Committee.

“Dodd–Frank gave the CFPB unprecedented power with no Congressional oversight whatsoever,” Perdue said in a statement.

“Despite the new Director’s efforts to bring transparency to the Bureau, its structure is still completely unconstitutional. The American people deserve a closer look at the CFPB to understand how its actions will impact consumers.”