Republican-controlled House of Representatives and House Financial Services Committee expected to focus on more oversight of the CFPB in the 118th Congress.
11/22/2022 10:00 A.M.
1 minute read
Oversight of the Consumer Financial Protection Bureau is expected to ramp up in the House of Representatives come the 118th Congress and U.S. Rep. Patrick McHenry’s, R-N.C., move to chair of the House Financial Services Committee, Bloomberg Law reports following the news the Republicans took the majority.
On one side, “the CFPB’s operational independence, alignment with the Biden administration’s policy orientation, and familiarity in dealing with a Republican-led House would largely enable the financial regulator to continue to pursue substantive policymaking, agency watchers say,” according to the article.
Sources, including Rachel Rodman, partner at Cadwalader Wickersham & Taft LLP, told Bloomberg Law CFPB policies will be on the committee’s radar, such as restricting payment transaction fees and using the unfair deceptive and abusive acts and practices enforcement standard for “bank accounts and other non-credit products.”
If legal challenges to the CFPB’s funding structure are reviewed by the U.S. Supreme Court as requested by the bureau, it’s likely they could send the issue back to Congress to determine how to bring the CFPB under the congressional appropriations process, ACA International previously reported on post-midterm election insights.
While that decision is pending, in 2023, the CFPB can expect document requests on CFPB policies prior to hearings before the House Financial Services Committee, according to the Bloomberg Law report.
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