David Williams, president of the Taxpayers Protection Alliance (TPA) said it is “absolutely ridiculous” that “Congress has no oversight” of the Consumer Financial Protection Bureau (CFPB).
“It goes back to the beginning, in 2010, the way that the CFPB was created is that Congress has no oversight of this agency,” Williams said on the American Legal Record podcast. “That sounds absolutely ridiculous, but it's absolutely true that Congress has no oversight, and that this is a creature of the Federal Reserve, and the budget is set by The CFPB.”
“So the CFPB, they get to decide their own budget as long as it doesn't exceed 12 percent of the Fed's operating expense,” Williams said. “We have an agency that is on almost autopilot and they get to give themselves raises no matter what as long as it doesn't reach that 12 percent threshold.”
The full podcast episode with Williams is available on Apple Podcasts and Spotify.
Williams said that just like “a seven year old kid needs oversight from their parents,” government agencies “need oversight from Congress.”
The TPA launched a new platform, called “CFPB Mission Creep” in January, meant to “educate the public on the negative impacts resulting from overreaching actions by unaccountable regulators” at the CFPB,” said the group in a press release.
Williams said that the CFBP’s “actions are unconstitutional, unaccountable, and simply unacceptable to consumers and taxpayers.”
His statements come at the same time the American Financial Services Association (AFSA) launched a “national education effort” to advocate for "clarity" from the CFPB but also to promote the industry's "Consumer Credit Protections" standards.
“Consumers and our industry need clarity, not confusion, to ensure all consumers can access the credit they need,” said Bill Himpler, AFSA President and CEO, in announcing that effort.
The TPA is a nonprofit organization based in the United States. Founded with the mission to educate the public about the government's fiscal policies and advocate for a more transparent and accountable government, TPA conducts research and analysis on various aspects of government spending and taxation. The organization engages in a range of activities, including publishing reports, organizing campaigns, and providing commentary on fiscal matters, aiming to influence public policy and promote fiscal responsibility at all levels of government.
The CFPB was established in 2011 following the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It operates as an agency of the United States government with the primary mission to enforce federal consumer financial laws and protect consumers in the financial sector. The CFPB's jurisdiction encompasses banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, and other financial companies operating in the United States.
