House Committee Passes Dodd-Frank Reform Legislation

Today, the House Financial Services Committee approved Chairman Jeb Hensarling’s (R-TX) Financial CHOICE Act (H.R. 10) by a party-line vote of 34-26. All Democrats voted against the measure. As expected, Democrats offered a series of amendments to the bill during the  three day marathon mark up, including amendments to maintain the Consumer Financial Protection Bureau’s (CFPB) funding through the Federal Reserve and to retain the Bureau’s unfair, deceptive, or abusive acts or practices (UDAAP) enforcement authority. The amendments all failed generally along party lines.

AFSA submitted a letter endorsing the chairman’s bill. The letter highlighted Title VII, which would make many much-needed reforms to the CFPB, including the following:

  • Eliminating the CFPB’s supervisory authority;
  • Prohibiting the CFPB from exercising rulemaking or enforcement authority over small-dollar credit;
  • Nullifying the Bureau’s 2013 indirect auto finance guidance;
  • Repealing the CFPB’s unfair, deceptive, or abusive acts or practices (UDAAP) enforcement authority;
  • Eliminating the Bureau’s authority to regulate arbitration clauses;
  • Prohibiting the publication of the consumer complaint database;
  • Allowing the president to remove the director at will;
  • Subjecting the CFPB to the Congressional appropriations process.

The bill now goes to the full House of Representatives. It is expected to be considered on the floor later this month before the Memorial Day recess.