U.S. Sen. John Kennedy (R-LA) is espousing the benefits of legislation that would result in requiring a thorough cost-benefit analysis for all Consumer Financial Protection Bureau (CFPB) rules.
The Transparency in CFPB Cost-Benefit Analysis Act would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act to require the cost-benefit analysis. The measure is supported by the U.S. Chamber of Commerce, the Independent Community Bankers Association, the Consumer Bankers Association, and the Credit Union National Association.
“Now more than ever, the Consumer Financial Protection Bureau must make sure that it doesn’t hamstring a struggling economy with burdensome regulations,” Kennedy, a member of the Senate Banking Committee, said. “The CFPB needs to put taxpayers before Washington bureaucrats, and this bill would help ensure that.”
Legislation provisions include conducting a qualitative and quantitative assessment of all direct and indirect costs and benefits of proposed CFPB regulation; identifying alternatives to the proposed regulation and comparing the benefits and costs of those alternatives; consulting with the Small Business Administration’s Office of Advocacy if a proposed rule would increase costs on small businesses; providing a probability distribution of potential cost and benefit outcomes; and ensuring the proposed rule is not duplicative, inconsistent or incompatible with an existing rule.