Tag: Consumer Protection Laws

Congress Sends CFPB Letter Demanding Its Source of Authority for Taking Actions Concerning the FCRA and Other Consumer Protection Laws November 2, 2022 Two ranking members of Congressional committees have sent a letter to the director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra. The Congressional members requested information about the agency's recent actions regarding the FCRA and other consumer protection laws. In addition, the letter seeks explanations for the agency's Congressionally granted authority in taking these actions. This letter potentially signifies a legislative push against what the body views as agency overreach on the CFPB's part. In the letter, the Representatives from the House Financial Services Committee and the House Oversight and Reform Committee referenced a recent decision by the Supreme Court in West Virginia v. EPA. This decision clarified that the authority of a federal agency must be traceable to a Congressional delegation of power. Furthermore, it emphasized how the source cannot come from an obscure provision found in enabling legislation. Supreme Court Justice Gorsuch voiced a concurring opinion on this matter. Justice Gorsuch stated that courts should look to the provisions agencies relied on when determining their role in the statutory scheme. The Representatives held this decision as a clarification regarding the limits of specific agency actions which bypass the typical legislative and rule-making procedures. Furthermore, the Congressmen state that the delegation of authority referenced by the Supreme Court in the decision is necessary for rule-making and other agency actions "that are intended to avoid transparency and accountability." Alongside this statement, the letter accuses the director of undertaking a "number of so-called 'initiatives' that circumvent not only Congressional intent but the Administrative Procedure Act (APA)." These actions include: An interpretive rule that limits the preemptive authority of the FCRA, safety encouraging states to pass their own consumer reporting laws that are equal to or stricter than the FCRA; An advisory opinion that narrowly interprets the FCRA regarding reports using name-only matching procedures; An interpretive rule that expands state authority in enforcing the Consumer Financial Protection Act of 2010; and An advisory opinion that expands equal credit opportunity and makes revocations and changes to the terms of certain credit arrangements. The letter states that the Congressional House Financial Services Committee and the House Oversight and Reform Committee will continue using their investigative and legislative authority to ensure the CFPB acts within its Congressionally delegated authority. It is unclear if this will affect the CFPB's current aggressive stance regarding interpretive rules and advisory opinions regarding the FCRA. However, this could point to a future increase in Congressional regulation as it uses its oversight powers to ensure the Bureau complies with the limits placed by the Administrative Procedures Act. Keep your business up to date on new laws and regulations with Pre-employ’s free news resources. Contact a sales rep today. Source

Tag: Consumer Protection Laws

Congress Sends CFPB Letter Demanding Its Source of Authority for Taking Actions Concerning the FCRA and Other Consumer Protection Laws

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