Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified before the Senate Banking Committee and the House Financial Services Committee this week for his semi-annual report to Congress.
In his opening remarks, Director Chopra highlighted CFPB actions in the financial data space, mentioning an upcoming proposed rule under the Fair Credit Reporting Act to restrict certain sensitive data usage and a newly proposed rule on medical debt. He also addressed "junk fees" and recent actions in the credit card sector.
Senators from both parties questioned Director Chopra about the medical debt proposal and junk fees. Auto finance and installment lending were not discussed. Senator Cynthia Lummis (R-WY) queried why a recent rule estimated examination costs so low. AFSA had noted that while the CFPB estimated costs at under $30,000 per exam, actual costs are no less than $200,000. Director Chopra promised to follow up with Senator Lummis on this issue.
Senator Katie Britt (R-AL) urged Director Chopra to avoid publishing identifiable information under Section 1071 rulemaking and to perform a more accurate cost analysis for compliance with the rule. While committing to privacy concerns, Director Chopra maintained that the CFPB used the best available data for its cost analysis. AFSA has engaged with CFPB multiple times during its Section 1071 rulemaking process, voicing concerns about privacy and compliance burdens.
Members of the House Financial Services Committee also pressed Director Chopra on various financial services issues, including medical debt, junk fees, an auto loan data collection pilot program, and a nonbank registry related to enforcement.
Representatives Bryan Steil (R-WI) and Warren Davidson (R-OH) asked about privacy concerns regarding the auto loan data collection pilot. In response, Director Chopra stated that no decision has been made yet on pursuing this data collection and that comments are still being solicited. Representative Dan Meuser (R-PA) pointed out that CFPB's estimate of 20 minutes per company for compliance is unrealistically low according to AFSA comments.
Representative Roger Williams (R-TX) argued against the recently finalized nonbank registry related to enforcement. He questioned the necessity of additional CFPB supervision when state agencies already have robust enforcement mechanisms in place, calling it "a solution in search of a problem."
June 14th, 2024 by gmcgurn@afsamail.org