US Rep. Haridopolos Says CFPB Needs Congressional Oversight

The Consumer Financial Protection Bureau (CFPB) has long been sold to the American public as a necessary watchdog against financial abuse. Its defenders argue that without it, consumers would be left at the mercy of powerful financial institutions. But they are ignoring the fact that consumer protection laws existed long before the CFPB was established.

The idea that the CFPB is the last and best line of defense against corporate overreach is misleading. Federal agencies like the Federal Trade Commission (FTC), the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and state-level regulators have enforced consumer protection laws for decades. The FTC has had authority over “unfair or deceptive acts or practices” since 1938, holding bad actors accountable for nearly a century.

When Congress passed the Dodd-Frank Act in 2010, it did not create consumer protections out of thin air. Instead, it consolidated regulatory power under the CFPB, stripping authority from other agencies that had long overseen financial compliance. In doing so, the CFPB became an unaccountable entity with sweeping authority, operating outside of traditional checks and balances. One of the most jarring aspects is its structure: unlike many regulatory agencies, the CFPB does not rely on congressional appropriations for funding, which insulates the agency from congressional oversight and transparency. This raises a fundamental question: If consumer protection is truly the goal, why was the CFPB designed to evade congressional accountability?

Recent media coverage, including a 60 Minutes segment, has sought to portray the CFPB as an indispensable champion of the American people. A closer look reveals significant misrepresentations. The piece framed opposition to the CFPB as corporate resistance to regulation, with former Director Rohit Chopra suggesting that major financial institutions “don’t like” the agency simply because it oversees them. Regulation is not the issue ― it’s the CFPB’s unchecked power and vague mandates, which have created uncertainty for banks, small lenders, credit unions, and the consumers it claims to protect.

Senator Elizabeth Warren, the key architect of the CFPB, argues that the agency is essential to prevent Americans from being scammed when buying homes, taking out student loans, or securing credit. Yet numerous federal and state agencies already regulate these financial products. The claim that without the CFPB, predatory practices would go unchecked is a dishonest rewrite of history. Federal and state regulators have enforced consumer protection laws for generations and continue to do so.

The CFPB’s own record of enforcement is far from flawless. The agency has often pursued headline-grabbing penalties against financial institutions without ensuring consumers receive direct benefits. Fines and settlements have poured into government accounts, but the actual relief to harmed consumers has been far less clear. The CFPB’s approach often prioritizes punitive measures over pragmatic solutions, creating a hostile regulatory environment that stifles innovation and increases costs for everyday Americans.

If Congress had exercised more control over the agency from the beginning, this would have been an ongoing legislative debate, instead of a drawn-out contest of executive orders and court rulings.

It’s past time the CFPB is held accountable to the American people through their elected representatives. On the House Financial Services Committee, Chairman French Hill and I will work with our fellow Republicans to rein in the agency. Congress and the American people deserve a say in how much funding is allocated to the CFPB, how it spends those funds, and whether the CFPB is fulfilling congressional objectives in a manner that would warrant reauthorization.

Beyond funding, Congress should examine the agency’s regulatory overreach and its impact on financial markets. The CFPB’s unpredictable enforcement actions have created instability in the lending industry, making it harder for small businesses and individuals to access credit. Financial institutions, from community banks to fintech startups, have struggled with ambiguous regulatory expectations that shift with each new administration.

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Additionally, the role of state attorneys general and financial regulators should not be overlooked. These officials have been enforcing consumer protection laws for over a century and are better positioned to understand and address the unique economic realities of their states. Instead of concentrating power in a distant, unaccountable federal agency, we should be empowering state-level authorities to take the lead on enforcement and oversight.There is also the question of long-term accountability. If the CFPB is to continue existing in any form, it must be subject to regular reauthorization by Congress, like most federal agencies. No regulatory body should operate indefinitely without legislative oversight. A sunset provision should be introduced to require periodic review of the agency’s effectiveness, ensuring that it remains accountable to the American people.

Americans deserve strong consumer protections and a government that is accountable and transparent. The CFPB fails on both counts. It is time to return consumer protection to the agencies with the experience, the oversight, and the constitutional legitimacy to do the job right. A government agency that exists outside of congressional control is a government agency that is not truly serving the people. Congress must take decisive action to restore balance and return regulatory power to America’s elected representatives, and away from the sole control of unaccountable bureaucrats.

Congressman Mike Haridopolos represents Florida’s 8th Congressional District in the House of Representatives, encompassing all of Brevard County, Indian River County, and parts of Orange County. He sits on the House Financial Services Committee, where he serves as Majority Whip.

This article originally appeared on Florida Today: Congressman Haridopolos says CFPB must have congressional oversight