House Financial Services Committee Considers CFPB Consumer Protection Progress Report

In a testimony before the House Financial Services Committee ("FSC"), CFPB Director Rohit Chopra reviewed progress to date on the agency's consumer protection agenda.

As in his recent testimony before the Senate Banking Committee, (see prior coverage) Mr. Chopra expounded on the agency's Fall 2021 Semi-Annual Report.

FSC Chair Maxine Waters (D-CA) touted Mr. Chopra's efforts, stating, "Under your leadership, I'm pleased that the CFPB is finally back on track." She commended the agency's efforts to: (i) "crack down on large financial firms that repeatedly break the law and harm individual consumers and working families (in particular, on the CFPB lawsuits filed against TransUnion and MoneyGram); (ii) "put an end to discrimination and ensure fairness in small business and consumer lending" (including proposing regulations that require lenders to collect demographic data on credit applications from small businesses); (iii) "coordinate with the Administration to ensure struggling homeowners can access the $10 billion myself and members of this Committee secured in the American Rescue Plan;" (iv) "examine the "junk fees" that financial institutions charge consumers"; and (v) "prevent low-income consumers and consumers of color from being discriminated against by the redlining practices or algorithmic bias that may be present at some tech firms."

Before the hearing, FSC Majority Staff released a Memorandum listing current consumer protection bills under FSC consideration, including:

• H.R. 2069, the "Home Loan Quality Transparency Act of 2021," which would amend the Home Mortgage Disclosure Act of 1975 to exempt very small banks (less than $30 million in total assets) from certain disclosure requirements;

• H.R. 2123, the "Diversity and Inclusion Data Accountability and Transparency Act," which would require regulated entities to provide information necessary to the Offices of Women and Minority Inclusion at various regulatory agencies;

• H.R. 5974, the "Veterans and Consumers Fair Credit Act," which would extend the consumer credit protections provided to members of the Armed Forces and their dependents under Title 10, United States Code, to all consumers;

• H.R. ____, the "Expanding Access to Credit through Consumer-Permissioned Data Act," which would require creditors to consider certain "alternative" credit information (including current payment and transaction information, bank statement information and rental payment information) when making mortgage loans;

• H.R. ____, the "Small Business Fair Debt Collection Protection Act," which would apply the Fair Debt Collection Practices Act to certain small business debt (loans of less than $2.5 million to a small business) to the same extent as such Act applies to consumers;

• H.R. ____, the "Credit Reporting Accuracy After a Legal Name Change Act of 2022," which would require nationwide consumer reporting agencies, upon request, to use a consumer's current legal name on consumer reports; and

• H.R. ____, the "Repeat Offenders and Megabank Accountability Act," which would require the Federal banking agencies to design a strategic plan to hold megabanks and large financial institutions accountable when they engage in a pattern of compliance failures that results in extensive consumer harm. Actions against a megabank may include restricting its growth, restricting lines of business, requiring the disposition of assets or removing or banning directors.