House Subcommittee to Conduct Oversight Hearing on CFPB

The House Financial Financial Institutions and Consumer Credit Subcommittee will question Elizabeth Warren, assistant to the President and advisor on the creation of the Consumer Financial Protection Bureau this Wednesday.

“I have reservations about the bureau and unintended consequences it could have on consumer choice in financial products,” said Subcommittee Chairman Shelley Moore Capito (R-WV). “This will be the start of a robust discussion of how the Consumer Financial Protection Bureau will be implemented and what powers it should have in regulating consumer credit.”

The agency has come under strong opposition from House Republicans, who have tried to limit the amount of funding available to the agency.  Beginning on July 21, it will be charged with regulating credit cards, home loans as well as reverse mortgages.

Financial Services Committee Chairman Spencer Bachus expressed his concern over the broad powers of the CFPB director, which has yet to be nominated by President Obama.

“The Dodd-Frank Act confers virtually unfettered discretion on the director of the Bureau to identify financial products and services that the director finds to be ‘unfair, deceptive, or abusive’ and ban them under a highly subjective standard that has no legally defined content,” he said.  “Professor Warren has not been nominated by the President to serve as the Bureau’s director, yet she is working as its de facto director and hiring staff.  As she has gone about her work, it has become even clearer to me that the Dodd-Frank Act put too much power in the hands of one person.”

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