H.R.1603 - Repeal CFPB Act (119th Congress)
Summary
H.R. 1603, the "Repeal CFPB Act," seeks to eliminate the Bureau of Consumer Financial Protection (CFPB) by repealing the Consumer Financial Protection Act of 2010. The bill aims to restore the legal framework that existed before the CFPB's creation. It was introduced in the House of Representatives by Mr. Donalds and referred to the Committee on Financial Services.
Expected Effects
If enacted, the CFPB would cease to exist, and its functions would likely revert to other existing agencies or remain unaddressed. This could lead to changes in consumer financial protection regulations and enforcement. The specific impacts would depend on how existing laws are interpreted and enforced in the absence of the CFPB.
Potential Benefits
- Reduced regulatory burden on financial institutions, potentially leading to increased lending and investment.
- Elimination of an agency perceived by some as overreaching or politically biased.
- Potential cost savings for the government by eliminating the CFPB's budget.
- Increased flexibility for financial institutions to innovate and offer new products.
- Return of regulatory authority to agencies with potentially different priorities.
Most Benefited Areas:
Potential Disadvantages
- Reduced consumer protection against predatory financial practices.
- Potential increase in financial fraud and abuse targeting vulnerable populations.
- Weakened enforcement of consumer financial laws.
- Uncertainty and instability in the financial marketplace.
- Loss of a dedicated agency focused on consumer financial protection.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutionality hinges on Congress's power to create and abolish agencies under Article I, Section 8, which grants Congress the power to make all laws necessary and proper for carrying out its enumerated powers, including regulating commerce. The creation of the CFPB was based on this power, and its repeal would similarly fall under congressional authority. However, arguments could arise regarding the impact on due process and equal protection if consumer protections are significantly weakened.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).