Last week, the House Financial Services Subcommittee on Oversight & Investigations conducted a hearing titled “From Watchdog to Attack Dog: Examining the CFPB’s Chopra-era Assault on Disfavored Industries.” The session focused on regulations and actions taken by the Consumer Financial Protection Bureau (CFPB) during both the Biden and Trump administrations. Testimonies were given by James Kim, Partner at Cooley; Jennifer Bassett, Chief Executive Officer of Pacific Rim Alliance Corporation; Devin Watkins from the Competitive Enterprise Institute; and Morgan Harper, Director of Policy and Advocacy at the American Economic Liberties Project.
The hearing featured opening statements from Rep. Dan Meuser (R-PA), Chair of the subcommittee, and Rep. Al Green (D-TX), Ranking Member, as well as Rep. Maxine Waters (D-CA), Ranking Member of the full Financial Services Committee. Chairman Meuser notably stated that he had submitted a letter to the Acting Inspector General of the CFPB "requesting a formal investigation into whether Director Chopra consistently exceeded his statutory authority."
Republican members questioned Jennifer Bassett about the Bureau's use of Civil Investigative Demand letters under Director Chopra, alleging overreach and lack of probable cause. They also raised concerns about potential violations of the 4th, 5th, and 7th Amendments related to these demands, with some suggesting that the agency should be eliminated.
Democrats pointed out that the CFPB has returned $21 billion to consumers while criticizing aspects of the Trump administration's handling of the agency. Their focus was on issues such as not having a permanent director and noting that an acting director has not testified before the subcommittee. Rep. Sam Liccardo (D-CA) questioned how effective the acting Bureau director has been, highlighting dropped cases against several large financial institutions.
The hearing underscored that the CFPB continues to be a subject of partisan debate. The American Financial Services Association will keep monitoring policymaker engagement regarding the future role of this agency.
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