House Republicans Accuse CFPB’s Uejio of Overstepping Powers

Republicans on the House Financial Services Committee are accusing Consumer Financial Protection Bureau Acting Director Dave Uejio of overstepping his authority by taking actions that traditionally would be reserved for a Senate-confirmed director.

“Senate confirmation is an important Constitutional process that ensures the will of the American public is preserved and Presidential power is limited,” the Republicans wrote in a letter to Uejio. “It is concerning the CFPB is conducting business as usual without a Senate-confirmed Director and without proper oversight.”

President Biden has nominated FTC Commissioner Rohit Chopra to serve as CFPB director. The Senate Banking Committee deadlocked 12-12 on the nomination. It still may come to the floor. Senate Republicans have blasted Chopra, saying he has not responded to letters asking whether he was involved in ousting CFPB employees this year.

It remains unclear when Chopra’s nomination may be considered by the full Senate.

Meanwhile, the House Financial Services Committee Republicans have questioned several decisions by Uejio.

They said that the CFPB has rescinded a Trump Administration policy that limited the types of actions the agency would take using its Unfair, Deceptive, Abusive Acts or Practices powers. They also said that Uejio has eliminated the use of Supervisory Recommendations, under which the agency could make recommendations without having an impact on a financial institution’s compliance rating.

The GOP members also criticized Uejio for resuming supervision of financial institutions under the Military Lending Act. The Trump Administration’s CFPB directors, Mick Mulvaney and Kathleen Kraninger had said the agency did not have power to enforce that law.

In a separate letter, House Financial Services Committee ranking Republican Patrick McHenry of North Carolina asked Chairwoman Maxine Waters, D-CA., to hold a hearing on whether Uejio should be making decisions that normally would be reserved for a permanent director.

Related:

CFPB to Resume Military Lending Act Enforcement

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