Will the CFPB get its own watchdog?

by MPA19 Feb 2015
A bipartisan duo has offered a bill to Congress that would create more oversight of the Consumer Financial Protection Bureau (CFPB).

Rep. Steve Stivers (R-OH) and Rep. Tim Walz (D-MN) have reintroduced legislation called, The Bureau of Consumer Financial Protection-Inspector General Act of 2015, which would create the Office of an Independent Inspector General position. The lawmakers argue the new bill would provide greater oversight of the regulator.

“Government accountability is important now, more than ever,” Stivers said. “This legislation will allow for increased oversight of an agency that has been given broad authority. It is important that we take the necessary steps to ensure the CFPB is accountable to the American people.”
The lawmakers noted that the CFPB is not subject to oversight from Congress through the annual appropriations process, as it receives funds through the Federal Reserve. It currently shares an inspector general with the Federal Reserve, who is appointed by the Fed leadership without congressional confirmation.

The new CFPB Inspector General would solely focus on the regulator’s activities and would be appointed by the president and then confirmed by the U.S. Senate.

“The CFPB is an important agency that works to ensure that you, the consumer, are protected from things like predatory payday lenders, shoddy mortgage bankers and defective products,” Walz said. “Their work is important, but that doesn’t mean that they don’t need oversight. I fully support their cause, to stand up for you and believe the appointment of an independent Inspector General will only increase their ability to fulfill their important mission.”

Click here to read more about the bill.


Should CFPB have more supervision over credit agencies?