CFPB reform bill passes House

On Feb. 27, 2014, the U.S. House of Representatives passed a bill that would reform the Consumer Financial Protection Bureau. H.R. 3193, which passed with a 232 to 182 vote, is designed to change the structure of the CFPB in order to curtail what the bill's supporters say is the agency's potential for regulatory overreach.

The bill, a package of bills given the title The Consumer Financial Freedom and Washington Accountability Act, would:

• Replace the CFPB director with a five-member commission (and rename the agency the Financial Product Safety Commission)
• Subject the agency to the regular appropriations process controlled by Congress
• Require the agency get consumer approval before it can access personal records of consumers
• Prevent the agency from regulatory overreach
• Set a pay rate for CFPB employees

The bill's sponsor, U.S. Representative Sean Duffy, R-Wisc., said, "This is a bill about accountability and transparency." The bill is supported by the American Bankers Association. But with White House senior advisors recommending that President Obama veto the legislation if it should pass the U.S. Senate, the bill seems to have little chance of becoming law.

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