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Rep. Royce Questions CFPB Director On Lack of Public Input in Bureau's Regulations

June 18, 2014

June 18, 2014

Contact: Saat Alety (202) 225-4111

Rep. Royce Questions CFPB's Cordray on Lack of Public Input in Bureau's Regulations

Washington, D.C. - U.S. Representative Ed Royce (R-Calif.) questioned Consumer Finance Protection Bureau (CFPB) Director Richard Cordray today at "The Semi-Annual Report of the Consumer Financial Protection Bureau" hearing held by the House Financial Services Committee. Rep. Royce released the following statement regarding his questions for Director Cordray:

"I have heard strong criticism that the CFPB is conducting regulation of financial products and services through enforcement actions and guidance bulletins rather than notice-and-comment rulemakings, which traditionally include input from the public and Congress," said Rep. Royce. "The CFPB promotes the bulletins as statements of law and policy and the enforcement actions as deterrents, yet in both cases the agency appears to be making policy without obtaining public input. This trend is a cause for concern, as the lack of public input during policy formulation often leads to unintended consequences including regulatory confusion and less consumer choice."

Rep. Royce questioned Director Cordray on the potential use of advisory opinions to help businesses seeking clarification on specific practices before enforcement action is contemplated. Cordray responded in the positive: "That is something we are looking to do in appropriate cases. I do think that we can probably do more in this area. Yes."

Watch Rep. Royce's questioning of CFPB Director Richard Cordray at:'ID=436944-67941562...

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Source: Congressional Documents & Publications

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