Rep. Susan Davis Opposes Bill to Weaken Consumer Financial Protection Bureau

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Washington, DC, April 22, 2015 | comments

Congresswoman Susan Davis (D-San Diego) opposed a House bill that would undermine the ability of a key consumer protection agency to protect American consumers. The bill (H.R. 1195) would limit future funding for the Consumer Financial Protection Bureau (CFPB).

“If we learned anything from the financial crisis is that there needs to be a cop on the beat to protect American consumers,” said Davis. “The Consumer Financial Protection Bureau is there to ensure that Americans are not subjected discrimination or unfair or deceptive abuses. Weakening its ability to enforce these laws could mean open season on consumers by any bad actors.”

Originally, H.R. 1195 was a bipartisan bill establishing three advisory boards to provide information about small businesses, credit unions and community banks to the CFPB during the rule-making process. The bill was voted out of the House Financial Services Committee with broad bipartisan support on a vote of 53-5.

But the House Majority changed the bill in the Rules Committee, drastically cutting funding for the consumer watchdog. H.R. 1195 would cut future funding for the bill by $50 million for FY 2020 and nearly $100 million for FY 2025.

The Dodd-Frank Wall Street Reform and Consumer Protection Act established the Consumer Financial Protection Bureau to protect consumers from the worst abuses in the financial marketplace.  Among the CFPB’s successes to date:

  • CFPB’s enforcement actions have resulted in approximately $5.3 billion in relief to more than 15 million consumers
  • Help for students struggling with high-cost private student loans – including recently securing $480 million in debt forgiveness for borrowers who took out high-cost student loans for Corinthian College
  • $208 million has been ordered paid in civil penalties as a result of CFPB enforcement actions and $147 million to be provided to consumers as a result of CFPB supervisory actions
  • More than 50 million consumers now have free and regular access to their credit score as a result of the CFBP’s credit score initiative designed to engage and educate consumers.
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