Congress must vote against legislative attacks on the CFPB, which must remain independent, with a single director and a secure mandatory funding stream. Congress must also protect CFPB rules including the fintech payment app rule, the overdraft fee rule, the medical debt rule, and small business and farm lending transparency rules.
Preserve the CFPB’s independence: Created on the heels of the 2008 financial crisis, the CFPB was intentionally designed to be led by a single independent director, rather than a much weaker commission structure. This allows the agency to more effectively guard against fraud, deception, and abuse and act nimbly to address wrongdoing by financial institutions.
Preserve the CFPB’s funding structure: Congress designed the CFPB to be funded through the Federal Reserve, with a mandatory and stable funding structure like how many other independent financial regulators are funded. In 2024, the Supreme Court reiterated the constitutionality of the Bureau’s funding structure in a 7-2 decision penned by Justice Clarence Thomas.
Protect the overdraft fees rule: The overdraft fee rule closes a decades-old regulatory loophole by lowering overdraft fees from $35 down to $5. Institutions charging more than $5 simply must disclose the costs of overdraft lines of credit. Members should oppose efforts to nullify this rule by voting “no” on H.J. Res. 59 and S.J. Res 18.
Protect the fintech payment app rule: This rule allows the CFPB to monitor larger nonbank digital payment providers such as PayPal, Venmo, CashApp, and Apple Wallet, just as it examines banks, to make sure they follow the law and avoid risky practices. Oversight is critical to make sure private financial data is protected and fraudulent charges are investigated.
Protect the medical debt rule: Medical debt is not an accurate predictor of the ability to pay off debts. Accordingly, the CFPB’s medical debt rule takes medical debt off credit reports and will help 15 million people in the US with unjustly lowered credit scores. No one should be punished with financial ruin simply because they experienced an unexpected medical event.
Please vote against legislation that would undermine the CFPB:
- Language that would subject the CFPB’s funding to annual appropriations through authorizing or appropriations legislation, or the budget reconciliation process
- Congressional Review Act (CRA) resolutions such as H.J. Res. 59 and S.J. Res. 18
- Bills to repeal CFPB enforced laws and sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act
- Efforts to push the CFPB into another banking regulator, such as the OCC
Protect our CFPB by voting “no” to all of these proposals.