CBA Releases Policy Recommendations Ahead of Acting CFPB Director’s Semi-Annual Address to Congress

WASHINGTON, D.C. - The Consumer Bankers Association (CBA) this week sent a letter to the U.S. Senate Banking Committee and U.S. House Financial Services Committee ahead of the Consumer Financial Protection's Bureau's (CFPB) Acting Director's semi-annual testimony to Congress conveying the need for Congress to pursue legislative action rooted in the following core reform principles intended to transform the Bureau into an apolitical regulator that follows the law, sets consistent rules, and provides the stability that consumers and markets depend on. The letter calls for reforms that:

• Ensure the CFPB follows the law and provides clear rules of the road: The Bureau should use enforcement to address clear violations and consumer harm - not create new legal standards after the fact.
• Require rigorous analysis before imposing new regulations: CFPB rules should be grounded in sound data and transparent cost-benefit analysis that considers impacts on consumers, access to credit, competition, and financial inclusion.
• Strengthen oversight of nonbank providers while preserving targeted supervision of banks: Consumer protections should follow financial activity and risk, not the type of institution providing a product or service.
• Promote coordinated, risk-based supervision: The CFPB should work with other financial regulators to reduce duplicative examinations and focus its resources where it can have the greatest impact.
• Improve the integrity and usefulness of consumer complaint data: The CFPB's complaint system should be accurate, verified, and focused on identifying legitimate consumer harm.
• Create a more stable and accountable CFPB structure: The Bureau's current structure has contributed to policy swings from one administration to the next. Recent legal developments underscore the importance of ensuring appropriate accountability while establishing institutional guardrails that promote stability, transparency, and consistent application of the law.

Moreover, CBA recognizes the opportunity that lawmakers have to enact meaningful, lasting reforms to the CFPB that benefit hardworking Americans:

"After years of regulatory whiplash, there is growing bipartisan recognition that the Bureau's current structure is not working. Lawmakers on both sides of the aisle have raised concerns about the Bureau's regulatory and political swings, its reliance on legal interpretations that pushed beyond what the statute authorized, and the lack of transparency and accountability. CBA has long championed a CFPB that is credible and durable, both by ensuring the CFPB bases its rulemaking and other actions in an apolitical manner based on data, and that it adheres to its statutory limits. Ultimately, however, only Congress can build the kind of durable, credible regulator that consumers and markets need."

What We're Advocating For

CBA appreciates the release of the CFPB Reform Act of 2026 - a comprehensive draft reform package published by the House Financial Services Committee Republicans.

The reform package proposes a restructuring of the CFPB by increasing congressional oversight, revising its funding and governance, and expanding transparency and accountability requirements for rulemaking and enforcement. The draft reform package also seeks to modify the CFPB's supervisory and enforcement authorities, clarify legal standards for consumer protection actions, promote regulatory coordination with other financial regulators, and establish new safeguards for financial institutions while also updating complaint processes, civil penalty provisions, and regulatory review requirements.

Below are pieces of legislation that CBA has historically voiced support for:

• H.R. 1652, the Rectifying UDAAP Act (Rep. Andy Barr)
• H.R. 1653, the Civil Investigative Demand Reform Act of 2025 (Rep. Andy Barr)
• H.R. 2331, the Transparency in CFPB Cost-Benefit Analysis Act (Rep. Barry Loudermilk)
• H.R. 2183, the CFPB Dual Mandate and Economic Analysis Act (Rep. Tom Emmer)
• H.R. 7588, the Eliminating Fraud in the CFPB's Complaint Database Act (Rep. Andy Barr)
• H.R. 654, the TABS Act (Rep. Andy Barr)
• H.R. 3445, the Bureau of Consumer Financial Protection Commission Act (Rep. Bill Huizenga)
• H.R. 2513, the CFPB-IG Reform Act (Rep. Dan Meuser)

To read the full letter, click HERE.

CBA Advocacy

• To read CBA's white paper calling for meaningful reforms to transform the CFPB into the credible, durable regulator that consumers deserve, click HERE.