financialservices.house.gov

Cmte Financial Services (R)
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Democrats Vote To Delegate Unprecedented Rulemaking Authority To An Unaccountable Credit Czar

WASHINGTON, Oct 22 -

October 22, 2009

- During consideration of H.R. 3126, legislation to establish a Consumer Financial Protection Agency (CFPA), Democrats on the House Financial Services Committee voted against an amendment offered by Congressman Kenny Marchant (R-TX) that would subject all CFPA's rulemaking authority to the same requirements of other Federal agencies, including advanced notice of proposed rulemakings and holding a public hearing.

The Democrats' legislation delegates all responsibility and accountability for consumer protection to the Director of the CFPA, who is given exclusive authority to write rules affecting millions of people. This delegation of Congressional authority to one bureaucrat without oversight is unprecedented. There are 33 independent Federal agencies and none of them has a director with the autocratic authority that would be delegated by this legislation.  Given this incredibly broad authority, it is reasonable to require the CFPA Director to comply with established rulemaking procedures. 

The amendment was defeated on a vote of 28-40.