The American Financial Services Association (AFSA) has announced its call for congressional oversight following a Department of Justice (DOJ) ruling that declared the Consumer Financial Protection Bureau's (CFPB) Federal Reserve funding mechanism illegal. The association highlighted the bureau's $279 million funding request and supported legislation for clearer financial services rules.
According to a blog post by AFSA, the CFPB's Acting Director Russell Vought sent a letter to President Trump and congressional leaders requesting $279 million for necessary activities. This request follows the DOJ's Office of Legal Counsel decision that deemed the bureau's funding from the Federal Reserve illegal, as the Federal Reserve has not shown profits since 2022. AFSA emphasized the importance of congressional oversight to ensure stable operations and clear guidelines for financial institutions.
Since its establishment, the CFPB has faced criticism over aggressive enforcement and regulatory overreach. Businesses have cited billions in penalties, restitution, and compliance costs as factors reducing access to credit and increasing consumer costs, leading to repeated calls in Congress to limit or restructure the Bureau’s authority.
The CFPB was created in 2011 under the Dodd–Frank Act as an independent agency within the U.S. federal government. With a 2024 budget of approximately $729 million and around 1,758 employees, it oversees mortgages, credit cards, payday lending, and other consumer financial products—centralizing powers previously spread across several regulators.
Founded in 1916, AFSA is a national trade association representing firms in the consumer credit industry. It advocates for protecting access to credit and consumer choice while promoting balanced regulation.
