Jefferson Reporter

U.S. Senator Katie Britt has raised concerns about the Consumer Financial Protection Bureau (CFPB) and its Director, Rohit Chopra, over regulatory actions that she believes are detrimental to American citizens, particularly those in vulnerable communities. In a session held on December 11, 2024, Senator Britt emphasized the need for significant reforms within the CFPB.

"I first want to really underscore the need for serious reform at the CFPB," stated Senator Britt. She criticized what she sees as a misuse of power by the agency and highlighted her issues with its current structure, which includes having "one director, no board, no votes [on rules], and...no real Congressional oversight."

Senator Britt pointed out potential negative impacts of certain CFPB regulations on rural hospitals and community banks in Alabama. She expressed concern over a proposal to remove accurate medical debt data from credit reports, warning it could harm rural hospitals. "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," she said.

Additionally, Senator Britt criticized the small business lending rule under section 1071 for potentially increasing compliance costs for community banks. "The compliance costs alone are literally putting at risk community banks in a multitude of ways," she remarked.

She also questioned Director Chopra's focus on financial fraud prevention. Noting that only one of his speeches addressed this issue directly despite Americans losing nearly $9 billion annually to scams, she commented on budget allocations: "[With] over $840 million to be used at your discretion,...the actual investments made in [financial fraud] education...was only about $5.7 million."

Senator Britt called for prioritizing consumer education against scams as part of future agency efforts.