AFSA calls for reforms at Consumer Financial Protection Bureau

AFSA, alongside its members, has compiled a list of policy requests aimed at increasing transparency and accountability within the Consumer Financial Protection Bureau (CFPB). These proposed policies focus on reforming the CFPB to reduce marketplace confusion caused by perceived overregulation from the Bureau.

According to AFSA, "Every consumer deserves access to some form of credit; they shouldn’t have to worry in times of need about not getting the credit they need to keep their financial lives on track." The organization emphasizes that reasonable regulations are essential for protecting consumers' access to credit, which is vital for their financial stability and economic mobility. They argue that consumers should feel confident in their protection while creditors require certainty and clarity to serve consumers effectively without falling into a regulatory "gotcha" situation.

The new CFPB director is urged to:

- "Stop rulemaking via guidance, adopt policies and procedures to ensure that rulemaking is done in compliance with the Administrative Procedures Act (APA), and create an Office of Economic Analysis."

- "Pause current rulemakings to review, rescind or revise certain final rules, and examine areas for which new rulemaking might be necessary."

- "Stop 'risk-based' supervision, reassess Supervisory Highlights, supervise more efficiently, and make changes to the consumer complaint database."

- "Pause and review current enforcement actions and institute additional policies and procedures for enforcement actions and civil investigative demands (CIDs)."

AFSA contends that the CFPB's extensive regulations are detrimental rather than beneficial to consumers. The organization calls for greater accountability and transparency from the CFPB.