The ability of millions of millions of Americans might be in danger if a federal regulatory agency, run by one man, has the ability to fundamentally transform the financial services industry. The credit options enjoyed by millions of Americans could be eliminated by federal regulation handed down from the Washington D.C.
This was revealed in hearings before the House Financial Services Committee with Richard Cordray, the Director of the Consumer Financial Protection Bureau (CFPB). The committee reports the agency has harmed consumers and low income Americans. While Cordray defended the actions and regulations of the agency he heads, the committee has concluded that, because of excessive regulations of the CFPB, that “big banks are bigger and the small banks are now fewer,” while also noting the regulations have, “eliminated competition, stifled innovation and given consumers fewer choices.”
The Financial Services Committee also concluded that CFPB regulations under Dodd-Frank have made it more difficult for Americans to achieve financial independence, and have raised prices of financial services, eliminated free checking services for millions, and have reduced consumer access to mortgages, bank accounts, and credit cards for millions.
“The CFPB has not only consolidated consumer protection laws into one agency, and has dramatically enhanced their scope…The CFPB has announced plans to move forward with rule-making that will completely alter the offering of short-term small-dollar loans, the rule will entirely disrupt the robust, state-based regulatory framework of this marketplace,” Rep. Randy Neugebauer (R-TX) stated.
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