House Bill Targets CFPB Funding, Rulemaking, and Enforcement
A new House Financial Services Committee bill seeks to reform the CFPB by moving it into the congressional appropriations process and requiring it to issue a formal rule defining what constitutes an "abusive" act or practice.
The House Financial Services Committee has introduced H.R. 10184, a bill that proposes a significant overhaul of the Consumer Financial Protection Bureau. The legislation, unveiled by committee leadership during a roundtable with industry representatives, seeks to increase the agency's accountability and provide clearer rules for financial institutions. Key provisions would subject the CFPB to the congressional appropriations process, removing its independent funding through the Federal Reserve, and would compel the agency to conduct a formal rulemaking to define 'abusive' acts and practices under the UDAAP standard. The bill also aims to create a clearer distinction between nonbinding agency guidance and legally enforceable requirements, reform aspects of bank and nonbank supervision, and modify civil penalty calculations. For counsel and clients in the financial services industry, this legislation represents a major potential shift in the regulatory landscape, promising greater predictability but also introducing new legislative and oversight dynamics. The bill's progression through the legislative process will be a critical development to watch.