At a U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing regarding the Consumer Financial Protection Bureau’s (CFPB) semi-annual report to Congress, Ranking Member Tim Scott (R-S.C.) criticized CFPB Director Rohit Chopra for what he described as the agency's overreach in authority and politically driven rulemakings.
Scott expressed concern about the CFPB's aggressive regulatory actions, which he believes negatively impact innovation and harm American families and small businesses. In his opening remarks, Scott said: “Thank you, Mr. Chairman Brown. Director Chopra, thank you for being with us here today. I will say that listening to Chairman Brown’s comments it sounds like we’re talking about two completely different agencies.”
Scott highlighted his efforts to overturn the CFPB’s rule on credit card late penalties and criticized the agency's enforcement tactics. He suggested that recent Supreme Court rulings on the CFPB’s funding structure only heightened concerns about its accountability. "Time after time, your agency brushes aside congressional concerns, forges ahead with political agendas, and pushes well past the boundaries of its authority," Scott stated.
The Senator also accused the CFPB of prioritizing political gains over consumer protection. He cited examples such as standing with President Biden during announcements related to junk fees and banning medical debt from credit reports alongside Vice President Harris. "You’re not protecting consumers or saving people money; instead you’re peddling a false narrative that the Biden administration is doing something to reduce actual costs," he remarked.
Scott emphasized that regulatory actions often result in unintended consequences for consumers. He questioned how much more it would cost consumers when they fail to qualify for credit cards due to unpaid balances or when their credit scores drop due to late payments.
Additionally, Scott criticized the CFPB’s civil investigative demands (CID) process as overly burdensome for small businesses. He shared an anecdote about a company subjected to years of costly investigations without any resulting action from the bureau.
“American consumers and businesses deserve better,” Scott concluded. “They deserve protection by their government from bad actors and to be left alone when they are simply trying to make a living.”