U.S. House Rep. Scott Fitzgerald (R-Wis.) introduced the Making CFPB Accountable to Small Business Act, which would require the Consumer Financial Protection Bureau (CFPB) to tailor its regulations for small businesses whenever undergoing Small Business Regulatory Enforcement Fairness Act (SBREFA) review.
Under existing law, the CFPB is required to engage in a SBREFA panel review before issuing any final rule that would impact small businesses. However, the newly proposed legislation would make the bureau more beholden to the opinions and decisions derived from the SBREFA panel and would require justification for when it does not specifically tailor regulations under consideration to the demands of the panel.
“Small businesses cannot afford to continue being crushed by one-size-fits-all policies coming out of Washington,” Fitzgerald said. “Federal regulators have abused the Small Business Regulatory Enforcement Fairness Act to the point it no longer protects small businesses. We must end the status quo and ensure panel reviews truly take into consideration the effect of proposals before enactment moving forward.”
The legislation received backing from the National Association of Federally-Insured Credit Unions (NAFCU).
“NAFCU thanks Rep. Scott Fitzgerald for his leadership to protect small businesses and the credit unions they partner with from burdensome regulations that impede access to credit,” said NAFCU President and CEO Dan Berger. “The Making the CFPB Accountable to Small Businesses Act will push for the necessary tailoring of regulations under SBREFA panel reviews. We look forward to working with Rep. Fitzgerald to make sure the CFPB does not obstruct Main Street’s success.”
It is also supported by the Credit Union National Association (CUNA).
“This bill would bring much-needed transparency to the CFPB’s rulemakings, which affect financial institutions of all sizes whether the bureau intends to or not,” said CUNA President and CEO Jim Nussle. “It’s especially necessary given our concerns the CFPB is moving forward with its credit card late fee proposed rule without the SBREFA panel required by statute.”