House Appropriations Committee Passes Bill To Gut Consumer Financial Protection and Repeal CFPB’s Authority to Regulate Arbitration

by Jeff Sovern

On a party line vote of 31-21, the House Appropriations Committee passed the Financial Services Appropriation bill.  Section 930 of the bill repeals the CFPB's authority to regulate arbitration.  Section 926 would subject the CFPB to the congressional appropriations process, thereby making it more accountable to lobbyists. Section 927 would gut the Bureau's power to supervise financial institutions. Section 928 would eliminate the Bureau's jurisdiction over payday lenders, including if they committed outright fraud, the Bureau would be unable to intervene. Section 929 would take away the Bureau's UDAAP powers, which would have meant it could do nothing about the Wells Fargo phony account scandal. (HT: Adam Zimmerman)

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