Representative John Ratcliffe (R-Texas) and Senator Ted Cruz (R-Texas) introduced legislation this week to sunset the Consumer Financial Protection Bureau (CFPB). The twin bills, H.R. 3118 in the House and S. 1804 in the Senate would repeal title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Representative Ratcliffe explains, “The CFPB’s regulatory zeal has stripped American consumers and businesses of their freedom of choice and has limited their access to capital – all in the name of a ‘we know best’ attitude from Washington.” Senator Cruz adds, “the agency continues to grow in power and magnitude without any accountability to Congress and the people.”
By introducing this legislation, Representative Ratcliffe and Senator Cruz are adding to a growing number of those calling attention to the wasteful nature of the CFPB. For instance, the CFPB’s new Washington office will cost taxpayers $215 million and feature amenities such as a glass staircase, concession kiosk and a “water wall” ending in a splash pool. An ironic choice of decor for an agency designed to “empower consumers to take more control over their economic lives.”
Such wasteful spending is no new development for the CFPB. In fact just a few years ago Judicial Watch found the Bureau had spent $4,500 to send attorneys to a “banking law fundamentals” class and was dishing out starting salaries as high as $173,000. Judicial Watch also found “a dozen new hires take home more than $225,000 a year, while a student intern was paid $51,620.”
The Bureau’s wasteful spending has largely gone unchecked due to an overall lack of oversight and accountability. The CFPB is not required to have their budget approved by Congress, unlike other government agencies. House Financial Services Chairman Jeb Hensarling (R-Texas) stated this makes the CFPB “unaccountable to taxpayers and to Congress.”
Sadly wasteful spending is not the only problem plaguing the CFPB. Such waste is compounded by the fact that the Bureau imposes debilitating regulations and fees on small businesses. Recently, Americans for Tax Reform shed light on these issues, which are costing American financial institutions $24 billion in final rule costs and $61 million paperwork burden hours.
Luckily for American taxpayers, Representative Ratcliffe and Senator Cruz are working to reign in the unchecked and wasteful spending that has come to characterize the CFPB.