The act would also reform the Consumer Financial Protection Bureau by eliminating the immunity of its sole director by allowing the president to remove the director at will.
The Center for Responsible Lending (CRL) is not happy.
Yana Miles, CRL senior legislative counsel, said the bill puts power back in the hands of big banks and predatory lenders.
“Dodd-Frank and the creation of the Consumer Financial Protection Bureau has created a fairer financial marketplace for consumers and has kept financial institutions accountable to the public,” Miles said. “This basic accountability is especially important for low-wealth families and communities of color who were hit hardest by the financial crisis.”
The CRL describes the bill – to which is derisively refers as the “Wrong Choice Act” – as an evisceration of the CFPB, as it will also eliminate the agency’s independent funding and will prohibit information from being posted on the consumer complaint database. The advocacy group says moves like that would make the public susceptible to critical problems such as redlining.
“The Trump administration’s recent support of this bill contradicts the president’s promise to drain the swamp and protect people from bad financial practices on Wall Street. Instead of giving free passes to loan sharks like payday lenders, Congress and the president should make consumer protection a top priority,” Miles said. “CRL and communities across the country – including veterans, faith leaders, consumers and others – will fight the Wrong Choice Act at every turn and continue to stand up for economic justice and inclusivity.”
Financial CHOICE Act would slash deficit by billions – CBO
Hensarling praises Trump budget’s proposal to gut CFPB
The U.S House of Representatives passed Thursday the Financial CHOICE Act – a bill that, according to the House Financial Services Committee, would roll back the Dodd-Frank Act of the Obama era and end taxpayer bailouts of financial institutions.