Palmetto State News

WASHINGTON — At today’s U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing on the Consumer Financial Protection Bureau’s (CFPB) semi-annual report to Congress, U.S. Senator Tim Scott (R-S.C.), who serves as the committee’s top Republican, held CFPB Director Rohit Chopra accountable for his pursuit of additional authority, alleged abuse of enforcement powers, and rulemakings driven by politics instead of policy.

Senator Scott is leading an effort to overturn the CFPB’s rule on credit card late penalties. He highlighted what he described as negative impacts of the agency’s regulatory agenda on innovation and its potential harm to American families and small businesses.

In his opening remarks, Senator Scott stated: “Thank you, Mr. Chairman Brown. Director Chopra, thank you for being with us here today. I will say that listening to Chairman Brown’s comments it sounds like we’re talking about two completely different agencies. Frankly, I’m sure our view is completely different.”

Scott criticized the CFPB's recent activities: “Based on the pace and scope of announcements I see coming out of your agency, it looks like full steam ahead... However, I want to be clear that their decision on the CFPB’s funding structure only increases my concerns about the agency’s lack of accountability.”

He expressed concern over what he sees as a lack of accountability within the CFPB: “Time after time, your agency brushes aside congressional concerns, forges ahead with political agendas, and pushes well past the boundaries of its authority.”

Scott also addressed what he perceives as political motivations behind some CFPB actions: “The CFPB is supposed to be an independent agency, but under your leadership it seems the Bureau works hand in hand with the White House... The political coordination is crystal clear.”

He criticized specific regulations such as those related to credit card late fees: “Take for example your credit card late fees rule... While the rule may save some folks around $20 dollars each time they make a late payment, how much will it cost these same consumers when they no longer qualify for a credit card because they haven’t paid their balances on time?”

Scott shared anecdotes from small business owners who feel burdened by CFPB investigations: “One small business recently described their process to me – and I thought it was really incredible to see what the government can do to you... For three years the CFPB audited this company... This audit resulted in no fines... Then in 2022... another CID [civil investigative demand], broadening their scope further and requesting millions of pages of documents."

Concluding his remarks, Scott emphasized that American consumers and businesses deserve better protection from bad actors without undue interference from regulatory bodies.