House Financial Services Chair Jeb Hensarling has proposed a Republican alternative to the Dodd-Frank Act, to be called the Financial Choice Act. The Committee's summary of the portions of the bill that affect the CFPB are as follows:
SECTION THREE: Empower Americans to achieve financial independence by fundamentally reforming the CFPB and protecting investors.
Change the name of the CFPB to the "Consumer Financial Opportunity Commission (CFOC)," and task it with the dual mission of consumer protection and competitive markets, with a cost-benefit analysis of rules performed by an Office of Economic Analysis.
Replace the current single director with a bipartisan, five-member commission which is subject to congressional oversight and appropriations.
Establish an independent, Senate-confirmed Inspector General.
Representative Hensarling's speech about the bill can be found here.
Require the Commission obtain permission before collecting personally identifiable information on consumers.
Repeal authority to ban bank products or services it deems "abusive" and its authority to prohibit arbitration.
Repeal indirect auto lending guidance.
SECTION FOUR: Demand accountability from financial regulators and devolve power away from Washington.
Make all financial regulatory agencies subject to the REINS Act, bi-partisan commissions, and place them on the appropriations process so that Congress can exercise proper oversight. (Exception: Fed monetary policy.)
Impose an across-the-board requirement that all financial regulators conduct a detailed cost-benefit analysis of all proposed regulations.
Reauthorize the Securities and Exchange Commission (SEC) for a period of five years with funding, structural, and enforcement reforms.
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Institute significant due-process reforms for every American who feels that they have been the victim of a government shakedown.
Repeal the so-called Chevron deference doctrine.
