U.S. Senator Katie Britt Demands Accountability, Reform to CFPB

Doubles down on dangers of Director Chopra’s rules to rural hospitals and community banks in Alabama

WASHINGTON, D.C., December 11, 2024 – U.S. Senator Katie Britt (R-Ala.) today questioned Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra regarding the agency’s problematic rulemakings and regulatory actions that are harming American citizens, especially those who are most vulnerable. 

“I first want to really underscore the need for serious reform at the CFPB,” said Senator Britt. “ . . . What we have seen over the last four years is just blatant misuse and politicization of an agency in ways it wasn’t intended. The CFPB has transformed into a regulatory nightmare for the exact people and businesses it is supposed to look out for. When you look at the way it’s structured, you have one director, no board, no votes [on rules], and, really outside of our opportunity to ask you questions in this setting, no real Congressional oversight. When you have just a solo director with nearly unlimited leeway to push his own agenda, that’s where I have a real issue . . . Despite the clear repudiation of this Administration’s policies from the American people, the CFPB is the only financial agency that has continued to push out last-second rulemakings. In my opinion, this is unacceptable. And, reforming the CFPB should be an immediate priority for next congress.”

The Senator emphasized the urgent need to reform the CFPB, which echoes calls she outlined in American Banker in October. Senator Britt pushed back on CFPB’s rules and regulations, as well. She emphasized the potential damage to rural hospitals due to the agency’s proposal to eliminate accurate medical debt data from credit reports.

“Really understanding the cumulative impact of what [the agency] is doing and understanding that the people you are trying to help, this may actually hurt,” said Senator Britt. “Looking at things in a more comprehensive way, I think, is imperative. In this instance in particular, if more of our rural hospitals close their doors, it’s going to leave thousands of people without medical care within hours of their homes.”

Senator Britt criticized CFPB’s misguided 1071 small business lending rule and the damage it will pose to community banks and their ability to provide credit and services to our Main Streets. She said, “The compliance costs alone are literally putting at risk community banks in a multitude of ways . . .  I want to make sure the agency continues to look at cumulative impacts and how rules like this hurt the most vulnerable.”

Senator Britt also questioned Director Chopra and the fact that his agency has seemed minimally focused on addressing the harms of financial fraud. She found that only one of the director’s 78 published speeches, and only one of the CFPB’s blog posts within his more than three years as director of the agency focused on this core function of CFPB. Additionally, of the nearly billion-dollar budget the Director requested in Fiscal Year 2024, only a small fraction was dedicated to financial education initiatives, while Americans are being scammed out of almost $9 billion per year.

“[With] over $840 million to be used at your discretion, . . . the actual investments made in [financial fraud] education . . .  was only about $5.7 million,” said Senator Britt. “As the agency moves forward, I feel like actual education of consumers that are being scammed and harmed has to be of the utmost priority.” 

Senator Britt’s full remarks are available here.

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