Washington, D.C. — U.S. Senator Katie Britt (R-Ala.) questioned Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra today over the agency’s regulatory decisions, highlighting concerns about their impact on American citizens, particularly vulnerable communities. During a Senate hearing, Senator Britt called for urgent reform of the CFPB, emphasizing its current structure and recent rulemakings as key issues.
“I first want to really underscore the need for serious reform at the CFPB,” Senator Britt stated. “What we have seen over the last four years is just blatant misuse and politicization of an agency in ways it wasn’t intended. The CFPB has transformed into a regulatory nightmare for the exact people and businesses it is supposed to look out for.”
Britt criticized the agency’s governance structure, noting that it operates under a single director without a board or Congressional oversight. She argued that this design allows for unilateral decisions that may not align with public or legislative priorities. “Despite the clear repudiation of this Administration’s policies from the American people, the CFPB is the only financial agency that has continued to push out last-second rulemakings. In my opinion, this is unacceptable,” she said, urging the next Congress to prioritize reforming the CFPB.
Senator Britt expressed alarm over the CFPB’s proposal to remove accurate medical debt data from credit reports, warning of potential harm to rural healthcare systems. “If more of our rural hospitals close their doors, it’s going to leave thousands of people without medical care within hours of their homes,” she said, emphasizing the need for a comprehensive approach to rulemaking.
Britt also criticized the CFPB’s 1071 small business lending rule, which she argued could harm community banks and small businesses. “The compliance costs alone are literally putting at risk community banks in a multitude of ways,” she said, urging the agency to consider the cumulative impacts of its rules on vulnerable populations and local economies.
Turning her attention to financial fraud, Senator Britt pointed out that only a small fraction of the CFPB’s nearly $1 billion budget is allocated to financial education initiatives, despite Americans losing nearly $9 billion annually to scams. She noted that only one of Director Chopra’s 78 public speeches and a single CFPB blog post during his tenure have focused on financial fraud.
“[With] over $840 million to be used at your discretion, . . . the actual investments made in [financial fraud] education . . . was only about $5.7 million,” Senator Britt said. She urged the CFPB to prioritize educating consumers about financial scams and enhancing protections against fraud.
Senator Britt’s questioning highlighted broader concerns about the CFPB’s direction and effectiveness. Echoing reforms she has previously outlined in American Banker, Britt called for increased accountability and oversight of the agency to ensure it fulfills its mission of protecting consumers without causing unintended harm.
