February 11, 2014

House passes clean debt limit bill, progresses on CFPB reform bill

The House of Representatives on Tuesday passed a clean debt limit increase bill, and approved a rule to consider legislation proposed by Rep. Sean Duffy, R-Wis., that would revise CFPB's structure and expand the Financial Stability Oversight Council's ability to veto bureau rules.

H.R. 3193, the "Consumer Financial Protection Safety and Soundness Improvement Act," is expected to be passed after the House recess that begins today. The debt limit bill passed by 221-201, and will extend the debt limit to March 15, 2015.

NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt wrote House leaders on Monday in support of the CFPB reform bill, saying: "NAFCU supports the concept of creating a five-person board or commission to govern the CFPB which is among potential improvements for the CFPB included in H.R. 3193."

Hunt also commended the bill for:

  • its language allowing the FSOC to veto CFPB rules on a simple majority vote of the council's members (excluding the CFPB director);
  • subjecting CFPB to the congressional appropriations process to facilitate more oversight; and
  • requiring CFPB to obtain consent from consumers before collecting their nonpublic personal information.
NAFCU is the only credit union trade organization that opposed placing credit unions under direct CFPB regulation; it continues to urge improvements to this agency.