Republican Congressman Jeb Hensarling, who chairs the House Financial Services Committee, released a summary of a bill to replace the Dodd-Frank Act. The bill is entitled “The Financial CHOICE Act,” with “CHOICE” standing for “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.” The accompanying press release indicated that the bill would be introduced later this month.
The summary indicates that the bill will include the following series of CFPB reforms, several of which have been the subject of previous Republican-sponsored bills:
- A change in the CFPB’s name to the “Consumer Financial Opportunity Commission,” with the CFOC assigned the dual mission of consumer protection and competitive markets and with CFOC rules to be subject to a cost-benefit analysis performed by an Office of Economic Analysis
- Replacement of the current single director with a bipartisan, five-member commission that is subject to the appropriations process
- Establishment of an independent, Senate-confirmed Inspector General (currently the CFPB shares an Inspector General with the Federal Reserve)
- Requirement for the CFOC to obtain permission before collecting personally identifiable consumer information
- Repeal of the CFPB’s authority to prohibit consumer financial services or products it deems “abusive” and its authority to prohibit the use of arbitration agreements
- Repeal of the CFPB’s indirect auto lending guidance