Noting a recent series of hearings before the HFSC revealed how the Dodd-Frank Act, and its spawning of the CFPB, has harmed consumers and low-income Americans, Hensarling said the big banks are bigger and many smaller banks no longer exist, which has stifled competition, reduced consumer choices, and resulted in higher prices. Moreover, it has reduced access to mortgages, bank accounts and credit cards, making it more difficult for low-income Americans to achieve financial independence.
Rep. Hensarling says it is presumptuous for one person, who is not accountable to Congress or potus, to decide whether small dollar, short-term loans will be available to low income Americans. Referring to Director Cordray, Rep. Hensarling says, “One man will decide whether he will permit Americans to resolve contract disputes more efficiently outside of the courts or allow the regulatory capture of his bureau by wealthy and litigious trial attorneys.”
He says it is “insulting, degrading and an affront to social justice” that low-income Americans cannot be trusted to make decisions for themselves, or have the right to make their own financial choices.
He says, “Today they find themselves at the mercy of an arrogant, overgrown, distant and unaccountable Washington bureaucracy. Instead of the equal protection offered by the impartial rule of law, they are today dictated to by the arbitrary rule of regulators, and Exhibit Number One is the CFPB director.”
He says it is essential to reform the CFPB in order to allow consumers the opportunity to pursue their dreams and achieve financial freedom. ##
(Editor’s Note: Congressman Hensarling’s comments in many ways echoes those in the video interview with MH Finance expert, Marty Lavin, the video is posted in the article linked here).
(Photo credit: wikipediacommons–Rep. Jeb Hensarling)
