David Williams, President of the Taxpayers Protection Alliance (TPA), expressed concerns that the Consumer Financial Protection Bureau (CFPB) is overstepping its mandate. He pointed to recent expansions into areas such as auto finance, video gaming marketplaces, and mortgage lending, stating these moves were made with minimal warning to those markets.
"We respectfully disagree with the Center for Responsible Lending. After these layoffs, financial misconduct can still be reported and punished," said Williams. "The CFPB has a severe case of Mission Creep. Last year alone, the CFPB attempted to dip its toe into monitoring automotive loans and finances, video game marketplaces, and mortgage lenders. All of these came about with very little warning to relevant markets. More importantly, the CFPB has neither the scope nor the mandate to do so."
In its Special Edition Auto Finance Supervisory Highlights (Fall 2024), the CFPB reported on supervisory examinations in auto finance. These examinations revealed issues including deceptive marketing of auto loans, wrongful repossession, misallocation of payments, failures associated with add-on products like insurance and warranties, and defective disclosures at loan origination. Critics argue this demonstrates an expansion of CFPB oversight into aspects of the auto finance market beyond what some consider its core financial product supervision.
According to reporting and legal analyses, the CFPB's report on video games surprised some in the gaming and related industries. The report addresses financial risks in a market not traditionally viewed as subject to financial regulation, such as in-game virtual currencies and virtual item trading. Firms and compliance attorneys described the gaming report as putting parts of the industry on notice that had not expected this level of regulatory attention. This supports claims of "little warning to relevant markets."
While the CFPB has authority under statutes like the Consumer Financial Protection Act to regulate "covered persons" and enforce against unfair, deceptive or abusive acts or practices, critics argue its mandate is not unlimited. They contend that the law does not clearly authorize the CFPB to regulate every market resembling a finance or payment system—such as video game marketplaces or certain virtual asset exchanges—without further rulemaking or explicit statutory language. Evidence from legal commentary debates whether these newer, non-traditional financial service contexts fall under CFPB’s statutory authority supports claims that "neither the scope nor the mandate" necessarily covers every such area.
Williams leads TPA, a non-profit advocacy organization based in Washington D.C., which focuses on regulatory oversight, government spending, and protecting taxpayer interests.