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Chamber of Commerce Initiative to Limit the CFPB

The Consumer Financial Protection Bureau (CFPB or Bureau) and, notably, new CFPB Director Rohit Chopra, have been accused of engaging in illegal regulatory overreach, according to the U.S. Chamber of Commerce (Chamber), which on June 28 initiated a targeted campaign to draw attention to this. The CFPB is advancing an activist agenda “at every turn,” according to Chamber Executive Vice President and Chief Counsel Daryl Joseffer, “without advance public input or permission.” That is not the system that Congress intended, and neither will our legal framework permit it.

The Chamber’s campaign expressly criticizes a number of suspected illegal conduct, including:

  • The Chamber is of the opinion that this scheme violates executive branch directives and civil service statutes that forbid preferential hiring and conflicts of interest.
  • Modifications to the CFPB’s Adjudication Procedures Rules of Practice. The Chamber views this as an unlawful enlargement of the director’s authority that compromises the right of defendant corporations to a fair trial and flouts the principle of the separation of powers.
  • Revocation of the 2013 choice to withhold publication of any final determinations or orders establishing supervisory authority over a covered person. Because the new regulation did not go through the required notice-and-comment procedure, the Chamber thinks that this violates the Administrative Procedure Act (APA).
  • The Consumer Financial Protection Act Interpretive Rule with Regard to State Attorneys General. The Chamber notes that this rule violates federal law and goes beyond the scope of the Bureau’s power.
  • Additionally, Chopra suggests outright bans on specific products and declares his aim to restructure the sector, which will eventually harm consumers by reducing their options and the level of competition.

The Chamber has made numerous Freedom of Information Act (FOIA) requests to the CFPB as part of its campaign against the federal agency, including:

  • Communications on the “Authority of States to Enforce the Consumer Financial Protection Act of 2010” interpretive rule, which was published on May 26.
  • All documents relating to the legitimacy, legitimacy, and legal basis of the 2021-advertised CFPB Policy Fellowship Program.
  • Current CFPB operating manual, procedures manual, and any other document(s) that describe the CFPB’s policies or regulations with regard to practices, processes, and internal operations.
  • all documents pertaining to Director Chopra’s decision that the Federal Deposit Insurance Corporation board could vote without the chair’s approval.
  • On March 16, all records pertaining to modifications to the CFPB’s examination practices were made public.
  • All documents pertaining to President Biden’s executive order of July 9, 2021, encouraging competition in the American economy.

The Chamber is of the opinion that the plans of a government entity with scant monitoring and excessive regulatory authority are laid out in this collection of documents, which is problematic and illegal.

According to Neil Bradley, senior vice president and chief policy officer at the U.S. Chamber of Commerce, “Director Chopra is aiming to utilize the CFPB to drastically restructure the American financial services sector.” “Rohit Chopra has an exaggerated perception of the CFPB’s function and the Director’s authority.”

Derived from an original article published by Stefanie Jackman and published in InsideARM online magazine.

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