Making the CFPB Accountable to Small Businesses Act Introduced in Congress
- Written by Steel Rose
Congressman Scott Fitzgerald (WI-05) introduced the Making the CFPB Accountable to Small Businesses Act. This legislation would require the Consumer Financial Protection Bureau (CFPB) to presume that size and sophistication-based tailoring of regulations are needed in SBREFA panel reviews. If tailoring is not undertaken by the panel, they must issue a justification. “Small businesses cannot afford to continue being crushed by one-size-fits-all policies coming out of Washington,said Congressman Scott Fitzgerald. Federal Regulators have abused the Small Business Regulatory Enforcement Fairness Act to the point it no longer protects small businesses. We must end the status quo and ensure panel reviews truly take into consideration the effect of proposals before enactment moving forward.”
“NAFCU thanks Representative Scott Fitzgerald for his leadership to protect small businesses and the credit unions they partner with from burdensome regulations that impede access to credit,said NAFCU President & CEO Dan Berger. The Making the CFPB Accountable to Small Businesses Act will push for the necessary tailoring of regulations under SBREFA panel reviews. We look forward to working with Representative Fitzgerald to make sure the CFPB does not obstruct Main Street’s success.”
“This bill would bring much needed transparency to the CFPB’s rulemakings, which affect financial institutions of all sizes whether the bureau intends to or not,said CUNA President & CEO Jim Nussle. It’s especially necessary given our concerns the CFPB is moving forward with its credit card late fee proposed rule without the SBREFA panel required by statute. We thank Rep. Fitzgerald for his leadership on this issue.”
Congress repeatedly has urged the CFPB to narrowly tailor its rules to specific consumer abuses. When the Small Business Regulatory Enforcement Fairness Act (SBREFA) was enacted in 1996, Congress intended to enhance and improve the ability of federal agencies to thoroughly understand how their rules impact small firms and concordantly use that information to eliminate unnecessary burdens on those entities. Over time, the SBREFA process has been treated as merely a check-the-box initiative where outreach is made to small businesses, but their feedback is not adopted in the final rulemaking. To read more click here.