Consumer Financial Protection Commission Act

Consumer Financial Protection Commission Act

This bill removes the Consumer Financial Protection Bureau from the Federal Reserve System, converts the bureau into an independent commission, and modifies its leadership structure. Specifically, the bill eliminates the positions of director and deputy director and establishes a five-person commission appointed by the President and confirmed by the Senate.

Bill 117 HR 4773, also known as the Consumer Financial Protection Commission Act, aims to restructure the Consumer Financial Protection Bureau (CFPB) by replacing the current single director with a bipartisan commission. The bill was introduced in the House of Representatives on March 3, 2021, by Representative Blaine Luetkemeyer.

The main purpose of this bill is to ensure that the CFPB operates in a more transparent and accountable manner by having a commission of five members, with no more than three members from the same political party. This change is intended to prevent any one individual from having too much power and to promote a more balanced decision-making process within the agency.

Additionally, the bill includes provisions to increase oversight of the CFPB by Congress, requiring the commission to submit annual reports to Congress on its activities and budget. It also establishes a process for the removal of commission members for cause, ensuring that they can be held accountable for any misconduct or negligence in their duties. Overall, the Consumer Financial Protection Commission Act seeks to improve the governance and effectiveness of the CFPB by introducing a bipartisan commission structure and increasing transparency and accountability within the agency. The bill is currently pending review in the House Financial Services Committee.