Read Director Chopra’s prepared testimony here and watch the recording of the hearing here. Chair Brown’s statement and Ranking Member Toomey’s statement are also available.
- Source: www.banking.senate.gov
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On April 26, 2022, Consumer Financial Protection Bureau (CFPB) Director Chopra testified before the Senate Committee on Banking, Housing, and Urban Affairs. In his prepared remarks, Director Chopra noted, “When small businesses violate the law, federal enforcers are often quick to levy crippling sanctions. But when larger players repeatedly violate the law, agencies are far more lenient. This is highly inappropriate” He followed up by stating that the CFPB will be shifting enforcement resources away from investigating small firms and placing more emphasis on investigating repeat offenders and large players and enforcing the law as written. The director observed that this may lead to more litigation.
Director Chopra also declared that the CFPB will issue more informal guidance during his tenure, including advisory opinions, compliance bulletins, policy statements, and other publications. He also said the CFPB will seek to simplify its rulemaking processes and implement “bright line” rules where possible.
Director Chopra discussed initiatives related to:
- Rulemaking under Sections 1033 and 1071 of the Consumer Financial Protection Act;
- Listening and learning from consumers, local financial institutions, and the business community to understand the need for potential changes to regulations and impact of rulemaking on stakeholders that are not regulated by the CFPB;
- Promoting competition by lowering barriers to entry; and
- Addressing privacy, fraud, discrimination, and other risks associated with Big Tech’s entry into financial services.
The hearing made it clear that the CFPB will continue to actively enforce consumer protection laws, address discrimination, and eliminate unfair, deceptive, or abusive acts and practices. Regulated entities should ensure their compliance management systems are ready for the scrutiny.