Sen. Kennedy introduces CFPB cost-benefit analysis bill

Sen. John Kennedy, R-La., introduced the CUNA and League-supported Transparency in CFPB Cost-Benefit Analysis Act Monday. The bill would require the Consumer Financial Protection Bureau (CFPB) to conduct a cost-benefit analysis and other procedures as part of any rulemaking activity.

“We thank Sen. Kennedy for introducing this bill that would bring needed accountability and transparency to the CFPB,” said CUNA President/CEO Jim Nussle. “The entities subject to the bureau’s rules and regulations deserve an honest breakdown of costs and benefits, information that will also be beneficial to consumers, lawmakers, and small businesses.”

“We applaud Sen. Kennedy’s leadership in introducing the League-supported Transparency in CFPB Cost-Benefit Analysis Act. Regulations established by the CFPB are not only burdensome to implement but carry unreasonable compliance costs with no justification in the rule making process,” said Lacey Weaver, senior vice president with the Louisiana Credit Union League. “This proposed legislation addresses the short-sighted processes by regulators and the excessive costs that are ultimately passed down to the consumer.”

Specifically, the bill would require the CFPB to publish along with any rulemaking:

• A statement of need for the regulation
• An examination of why the private market or other authorities cannot address the problem.
• An examination of whether the proposal is duplicative or inconsistent with other federal regulations, and additional justifications if it is.
• An assessment of all anticipated direct and indirect costs and benefits of the proposed regulation.

CUNA and Leagues also support the House version of the bill introduced last month by Rep. Alex Mooney, R-W.V. The text of Mooney’s bill was included in a legislative package passed last week by the House Financial Services Committee that makes further reforms to the CFPB.