99999++House Financial Services Committee Republicans are expressing concerns to the Consumer Financial Protection Bureau (CFPB) regarding actions related to nonbank financial firms exceeding the agency’s statutory authority.
Officials noted House Financial Services Committee Republicans recently forwarded correspondence to CFPB Director Rohit Chopra regarding Nonbank Supervision; Buy Now, Pay Later (BNPL); Office of Competition and Innovation; and Peer-to-Peer (P2P) payments.
“We write to express our concern with recent actions taken by the Consumer Financial Protection Bureau (CFPB),” the legislators wrote. “In particular, the CFPB’s recent actions with respect to nonbank entities exceed its statutory authority and harm the very consumers the CFPB was established to protect. The result of CFPB’s actions will be fewer financial products and services available in the marketplace – an outcome in direct conflict with fostering increased competition and innovation. We call on you to rescind these actions immediately.”
The lawmakers maintain the CFPB’S approach regarding Nonbank Supervision will be abused as a tool to shame market participants without due process; believe BNPL products provide consumers with financial flexibility and the ability to budget accordingly while allowing room for innovation to help consumers have choice and accountability over their own financial decisions; maintain replacing the Office of Innovation with the Office of Competition and Innovation has the likely potential to harm consumers and communities;/ believe the CFPB should not *reinterpret Congress’ meaning and upend P2P payment systems and their benefits to consumers, small businesses and payment systems.
The House Financial Services Committee Republicans concluded the correspondence by asking a series of questions directed to the CFPB regarding its approach to addressing its actions.