Hensarling has long been a vocal critic of the CFPB and its director, Richard Cordray, who announced this week that he would leave the post by the end of the month. Hensarling has long maintained that Cordray wielded too much power and had too little accountability. At one hearing earlier this year, the Texas Republican accused the CFPB of “regulatory waterboarding.”
“We are long overdue for new leadership at the CFPB, a rogue agency that has done more to hurt consumers than help them,” Hensarling said in a statement after Cordray announced his resignation. “The CFPB tramples on the fundamental economic rights of American citizens, taking away their choices and opportunities.”
Hensarling said that the agency’s “extreme overregulation” led to higher costs and less access to financial services for lower- and middle-income families. “All this harm is made even worse by the fact that the CFPB is structurally unconstitutional and completely unaccountable to the American people,” he said.
“The resignation of the bureau’s director is an excellent opportunity to enact desperately needed reforms,” Hensarling said. “The bureau has an important mission. Properly designed and led, it can truly protect consumers by ensuring they have access to competitive markets that are vigorously policed for fraud. That’s the best way to provide consumers with more affordable choices for the financial products and services they want and need.”
Cordray cleared of Hatch Act violations
Hensarling demands investigation into whether CFPB director violated Hatch Act
The announcement that the director of the Consumer Financial Protection Bureau was resigning came as welcome news to one powerful Republican. Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, said Cordray’s resignation was “long overdue.”