The Foundation for Government Accountability (FGA) has raised concerns over a proposed rule by the Consumer Financial Protection Bureau (CFPB). The FGA claims this move would expand the CFPB's authority significantly, potentially affecting businesses not currently under the Fair Credit Reporting Act's (FCRA) definition of a "consumer reporting agency."
According to FGA, if implemented, this rule could impose new compliance requirements on businesses, which may hinder their ability to use data essential for protecting consumers against fraud and identity theft. Nick Stehle, Vice President of Communications at FGA, stated that the CFPB's mission seems to have shifted from "protecting consumers" to "empowering bureaucrats." He described the proposal as an "unlawful overreach" that could harm businesses and increase risks for Americans.
Stehle emphasized the need to focus on eliminating unnecessary elements within Washington bureaucracy rather than expanding it. This proposal is not CFPB's first attempt at increasing its authority. Last year, FGA filed a brief with the Supreme Court challenging CFPB’s efforts to secure funding outside of congressional appropriations.
FGA expressed its intention to continue advocating for accountability within federal agencies and criticized what it sees as a pattern of using agency rulemaking to expand government power under the Biden administration. Stehle concluded by stating that Congress should be responsible for making laws, not unelected officials.
The Foundation for Government Accountability is a non-profit organization focused on promoting public policy solutions aimed at creating opportunities for Americans.