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Washington, D.C. – Yesterday, Congressman Emmer introduced the CFPB Dual Mandate and Economic Analysis Act. The CFPB (Consumer Financial Protection Bureau) - a creation of the controversial Dodd-Frank Wall Street Reform and Consumer Protection Act -  has been the center of a great deal of criticism for imprudently wielding its power to regulate many industries that had absolutely nothing to the 2008 economic crash. From auto lenders, to credit unions and community banks, the CFPB has placed burden after burden on the financial services industry, which has hurt the very people they are obligated to protect – American consumers.

The CFPB Dual Mandate and Economic Analysis Act (H.R. 5211) amends the mission of the CFPB to direct their attention to competition and consumer choice while continuing to focus on fairness and transparency. This enhancement ensures that consumers will have access to a diverse array of financial services providers and products that are more responsive to the individual needs of all Americans.

The legislation would also establish an Office of Economic Analysis (OEA) at the CFPB to review and assess proposed guidances, orders, rules and regulations. In particular, the OEA would analyze how the aforementioned actions at the CFPB would affect consumer choice, price and access to financial products. These findings would then be published in the Federal Register enabling the public to comment on the merits or faults of the proposed action. If the director disagrees with the findings, he/she must submit a notice of disagreement that accompanies the promulgation of any CFPB action. Additionally, the OEA would also be required to review each action by the CFPB after 1, 2, 5, and 10 years of implementation so that the American people, Congress and the CFPB can evaluate effectiveness.

“It is time that we reform our government to help American consumers. By requiring the CFPB to focus more on competition and consumer choice, Minnesotans win,” Emmer said. “Ensuring that consumers and businesses can weigh in on actions by the CFPB before they are implemented increases the transparency and accountability of our federal government which the American people deserve.  Finally, once the CFPB implements a rule it only makes sense that our government studies its effectiveness so that it can be reformed or removed if it does harm.”

Congressman Tom Emmer represents Minnesota’s Sixth Congressional District and is a member of the Financial Services Committee.

CFPB Dual Mandate and Economic Analysis Act is H.R. 5211. Click here to read the full text.