Repeal CFPB Act
- Bill Number
- H.R. 1603
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-02-26: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-10-15T08:05:20Z
AI-Generated Summary
Purpose of the Legislation
The "Repeal CFPB Act" (H.R. 1603) aims to completely eliminate the Bureau of Consumer Financial Protection (CFPB), a federal agency created to safeguard consumers from unfair, deceptive, or abusive practices by banks, credit card companies, and other financial institutions.
Key Provisions
- Repeal of the Founding Law: The bill repeals the entire Consumer Financial Protection Act of 2010 (Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act), which established the CFPB.
- Restoration of Prior Laws: Any laws that were changed or repealed by the 2010 Act are automatically restored or revived, treating the CFPB's creation as if it never happened. This includes reverting regulatory authority back to pre-2010 frameworks.
Significant Changes to Existing Law
- Dissolution of the Agency: The CFPB, an independent agency housed within the Federal Reserve System but operating autonomously, would cease to exist entirely.
- Shift in Oversight: Responsibilities for consumer financial protection would revert to other federal agencies, such as the Federal Trade Commission (FTC) or banking regulators like the Office of the Comptroller of the Currency, undoing the centralized approach established in 2010.
- No Transitional Measures: The bill provides no specific guidance on handling ongoing CFPB enforcement actions, rules, or funding, potentially leading to abrupt changes.
Potential Impacts
- On Government Agencies: The CFPB's dissolution would eliminate a major regulatory body with a budget funded by transfers from the Federal Reserve (not taxpayer dollars), redistributing its workload and resources to other agencies. This could strain those entities and reduce overall federal oversight of financial markets.
- On Citizens: Consumers might face reduced protections against issues like predatory lending, hidden fees, or discriminatory practices in mortgages and credit cards, potentially increasing vulnerability to financial harm without a dedicated advocate.
- On International Relations: No direct impacts are outlined, though the change could indirectly affect U.S. credibility in global financial standards, as the CFPB has influenced international consumer protection norms.
Main Stakeholders Affected
- Consumers: Individuals and families relying on protections for everyday financial products like loans, credit reports, and payment apps.
- Financial Institutions: Banks, payday lenders, and fintech companies, which could benefit from lighter regulation but might face uncertainty during the transition.
- Other Regulators: Agencies like the FTC, Securities and Exchange Commission (SEC), and Federal Reserve, which would absorb CFPB duties.
- Lawmakers and Advocacy Groups: Supporters of deregulation (e.g., some business lobbies) versus consumer rights organizations that rely on the CFPB for enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The repeal could invalidate thousands of CFPB rules, settlements, and lawsuits, raising questions about retroactive effects on past violations or contracts. Courts might need to resolve disputes over ongoing cases, and the bill's broad language could invite legal challenges for lacking detail on implementation.
- Constitutional Implications: By dismantling an agency created by Congress, it tests the balance of powers; critics might argue it undermines congressional intent from the 2010 law, while supporters see it as a valid legislative reversal. No direct constitutional violations are specified.
- Political Implications: Introduced by Republican representatives, the bill reflects ongoing debates over post-2008 financial reforms, potentially signaling a push for less government intervention in the economy if enacted, though it faces significant hurdles in a divided Congress.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Rep. Ogles, Andrew [R-TN-5], Rep. Norman, Ralph [R-SC-5], Rep. McCormick, Richard [R-GA-7], Rep. Gill, Brandon [R-TX-26], Rep. Dunn, Neal P. [R-FL-2], Rep. Sessions, Pete [R-TX-17]
Recent Actions
- 2025-02-26: Referred to the House Committee on Financial Services.
- 2025-02-26: Introduced in House
- 2025-02-26: Introduced in House
Bill Versions
- Repeal CFPB Act — issued 2025-02-26 — PDF (1 pages)