The bill would place the CFPB under the regular appropriations process, limit its authority to define financial practices as abusive and take away its ability to seek monetary relief in certain circumstances.
While industry trade groups expressed support for the proposed changes, consumer advocates said the bill was yet another effort by the Trump administration toward deregulation.
The OIG found that stop-work orders resulted in CFPB personnel temporarily not performing work on enforcement and supervision, while workforce-reduction actions had limited impact on operations.
The OIG said the termination of contracts as part of cost-cutting efforts impacted the CFPB’s consumer complaint database, research, monitoring and regulations division and office of financial education.
The settlement will resolve a class action stemming from a March 2023 data breach. California also recently fined Academy $825,000 for the same incident.
The rescission follows the CFPB’s recently finalized amendments to Regulation B, and the withdrawal of other federal guidance on special purpose credit programs.
H.R. 10184, the Consumer Financial Protection Accountability and Reform Act, would bring the CFPB under the congressional appropriations process, require cost-benefit analyses for rulemakings and stipulate periodic reviews of major rules to ensure their benefits justify their costs.