Transparency in CFPB Cost-Benefit Analysis Act

Transparency in CFPB Cost-Benefit Analysis Act

This bill sets forth information required to be included in a rulemaking made by the Consumer Financial Protection Bureau (CFPB). Specifically, the CFPB must publish a justification of the proposed rulemaking; a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits; alternatives to the proposed rulemaking; impacts on small businesses; and any assumptions, data, or studies used in preparing this information.

Bill 118 hr 1313, also known as the Transparency in CFPB Cost-Benefit Analysis Act, is a piece of legislation introduced in the US Congress. The bill aims to increase transparency and accountability within the Consumer Financial Protection Bureau (CFPB) by requiring the agency to conduct cost-benefit analyses for its regulations.

Under the bill, the CFPB would be required to publish a detailed cost-benefit analysis for each proposed regulation, outlining the potential costs and benefits of the regulation to consumers, businesses, and the economy as a whole. This analysis would need to be made available to the public for review and comment before the regulation can be finalized.

Supporters of the bill argue that requiring the CFPB to conduct cost-benefit analyses will ensure that the agency's regulations are based on sound economic principles and will lead to more effective and efficient rulemaking. They believe that increased transparency will also help to hold the CFPB accountable to the American people. Opponents of the bill, however, argue that it could hinder the CFPB's ability to protect consumers from predatory financial practices by creating unnecessary bureaucratic hurdles. They believe that the agency already considers the costs and benefits of its regulations and that this bill is simply an attempt to undermine its authority. Overall, the Transparency in CFPB Cost-Benefit Analysis Act is a controversial piece of legislation that seeks to increase transparency and accountability within the CFPB. Its impact on the agency's ability to protect consumers and regulate the financial industry remains to be seen.