financialservices.house.gov

Cmte Financial Services (R)
Contact:


McHenry Remarks at Semi-Annual CFPB Hearing

Washington, Oct 16 -

WASHINGTON – Today, the House Financial Services Committee held a hearing to conduct its semi-annual review of the Consumer Financial Protection Bureau (CFPB). Despite CFPB Director Kathy Kraninger’s work to enhance financial innovation, protect consumers from abusive debt collection practices, and address the Bureau’s fundamental structural issues, Democrats have tried to hamstring the Director’s actions at every step.

Read Republican leader Patrick McHenry’s (NC-10) opening remarks as delivered:

“Thank you, Madam Chair, and thank you Director Kraninger for being here today.

“I want to begin by thanking you for defending consumers and working on behalf of consumers. I appreciate your commitment to process, fairness, and to the rule of law.

“I also want to thank you for your recent letter to the Department of Justice and to the Speaker of the House about the “for cause” removal provision that governs the “Director” position.

“We all have taken an oath to uphold the constitution. This includes ensuring the Bureau’s organizational structure, which was created by the Democrats, is constitutional as well.

“I said this past March, I sense a case of buyer’s remorse by my friends on the other side of the aisle when it comes to the CFPB. Under former Director Cordray’s regime, the limitless authority bestowed upon the CFPB director was never an issue for my Democrat friends.

“However, now that Republicans are in charge of this Administration and we have a newly appointed and confirmed director, and that new director is making necessary and appropriate changes to the way the Bureau functions, my colleagues on the other side of the aisle are unhappy with the product of their creation.

“Instead of upholding the Bureau as a wholly independent agency free of political influence, the Democrats are passing bills to: curtail your authorities; dictate the names of Bureau offices; and decree how employees should refer to the CFPB in public.

“You’re criticized for helping consumers by delivering clear rules of the road to financial companies. You’re reprimanded for modernizing rules that haven’t been touched in decades and do not account for technological innovations that have changed the way consumers and financial institutions interact.

“There is no doubt the CFPB needs reform. Guardrails should be put in place; oversight and accountability must be more robust; and structural changes that put consumers above politics are needed.

“Before I yield back, I want to recognize the Bureau’s efforts to enhance financial innovation. How consumers interact with financial firms is changing rapidly. We cannot bury our heads in the ground and pretend that innovation isn’t occurring. We can’t stand in the way of innovation and try to kill it before it goes. We need to closely examine how financial technology can increase access to credit and put consumers on the path to financial independence, while ensuring those consumers remain protected.

“Director Kraninger, I encourage you to continue with your plans and do what you need to do to ensure the Bureau’s goals are fully embraced and implemented by your examiners in the field.  

“I hope my colleagues will bear in mind that you, like so many of us in this room today, are a public servant and are committed to consumer protections.

“And I hope that my colleagues will treat you with that same type of fairness that they’ve sought for others that have been sitting in your same position.

“I look forward to your testimony today.”