By Rep. Jeb Hensarling
Wall Street Journal
Rep. Jeb Hensarling penned an opinion piece in the Wall Street Journal, where he laid the foundation for his committee's plan to reign in the unchecked power of the CFPB and transfer its authority to federal agencies that are subject to Congressional oversight.
- "The CFPB is arguably the most powerful, least accountable agency in U.S. history. CFPB zealots have the power to determine the 'fairness'" of virtually every financial transaction in America. The agency defines its own powers and can launch investigations without cause, imposing virtually any fine or remedy, devoid of due process. It requires lenders essentially to read their clients' minds, know and weigh their clients' comprehension levels, and forecast future risk. It can compel the production of reams of data and employ methodologies that 'infer' harm without finding any specific instance of harm or knowing violation...
When Democrats sought to take consumer protection outside the democratic process, consumers were harmed by a reduction in competition. With fewer lenders serving fewer borrowers, fewer businesses employed fewer workers. A healthy economy is the first casualty of any war on credit, and a loan denied becomes a job lost. The CFPB has eroded freedom, trampled due process and killed jobs. It must go."
Read the full article here.