U.S. Sens. Pat Toomey (R-PA) and Bill Hagerty (R-TN) introduced legislation last week that would make the Consumer Financial Protection Bureau (CFPB) accountable to Congress.
The CFPB Stability Act would reform the agency’s funding structure by subjecting it to congressional appropriations. Further, it would replace the agency’s single director with a bipartisan five-member commission. This would be similar to structures at numerous other government boards, including the Securities and Exchange Commission, the Federal Deposit Insurance Corp., Federal Communications Commission, and the Federal Election Commission.
“Under Director Chopra, the CFPB is more out of control than ever,” Toomey said. “The CFPB Stability Act will make the agency constitutional and accountable to Congress and the American people by subjecting it to congressional appropriations and converting it into a bipartisan, multi-member commission just like the FDIC and SEC.”
The bill states that the five members of the bureau would be appointed by the president. Further, each bureau member, including the chair, would serve a five-year term. It also says the president may remove any bureau member for inefficiency, neglect of duty, or malfeasance in office. Also, no more than three members of the bureau shall be a member of a single political party.
Toomey is the ranking member of the Senate Banking Committee, which held a hearing last on CFPB oversight.