| Entities | American Bankers Association (ABA) (5) Consumer Bankers Association (CBA) (9) |
| Topics and Issues | FOIA (11) |
Politico reported that in June 2022, the U.S. Chamber of Commerce is “going after” Bureau Director Rohit Chopra “in a public campaign, accusing him of attempting to ‘radically reshape’ American finance.” Yesterday, the Chamber announced “an extensive campaign to expose and defeat [Chopra’s] ideologically driven agenda to radically change the nature of America’s financial services industry. If allowed to proceed, his agenda would harm consumer choice and innovation.”
Politico added that,
[t]he extraordinary move by the Chamber comes after Chopra has repeatedly incensed the industry since taking over as the head of the CFPB in October. The combative bureau chief has zeroed in on big technology companies, banks and credit-reporting firms, signaling a crackdown on their handling of personal data and fees. In March, the agency updated its examination guidelines to clamp down on discrimination in cases where fair lending laws do not apply, a move the Chamber called ‘unlawful.’
The U.S. Chamber Litigation Center, the Chamber’s litigation arm, wrote two letters to Director Chopra. One letter noted that a recent “amendment [to the Bureau’s examination manual] will harm businesses, and consumers, through its adoption of the novel position that the Bureau can examine financial institutions for alleged discriminatory conduct under its ‘unfair, deceptive, and abusive acts or practices’ (UDAAP) authority.” A second letter addressed the “Bureau’s imprudent and unlawful actions.” Specifically, that letter highlighted four points:
- “The CFPB Policy Fellowship program circumvents civil-service laws and executive-branch guidance that prohibit preferential hiring and conflicts of interest.”
- “The Bureau’s revisions to its Rules of Practice for Adjudication Proceedings impermissibly expand the Director’s powers in ways that undermine due process for defendant companies and violate the separation of powers.”
- “The Bureau’s effective repeal of its 2013 decision not to publish a final decision or order establishing supervisory authority over a covered person violates the Administrate Procedure Act because the revised rule did not go through the required notice-and-comment process.”
- “The Bureau’s interpretative rule claiming that state attorneys general have the authority to enforce the Consumer Financial Protection Act is inconsistent with federal law and exceeds the Bureau’s authority. It would not, when the time comes, receive Chevron deference from the courts.”
As part of its campaign, the U.S. Chamber of Commerce is:
- Launching a new six-figure digital ad campaign. The ads highlight Director Chopra’s outsized view of his role and radical agenda, subject to no accountability.
- Filing six Freedom of Information Act (FOIA) requests. The FOIAs demand that the agency make available its current procedural manual, records relating to the agency’s communications with the White House on President Biden’s July 9, 2021 Executive Order on Competition, among other requests for additional transparency. These FOIA requests address:
- Communications with State Attorneys General regarding enforcement of the Consumer Financial Protection Act of 2010.
- The establishment and use of the CFPB’s “Policy Fellowship Program”.
- The CFPB procedures manual and operating manual.
- Director Chopra’s determination that the board of the Federal Deposit Insurance Corporation should hold a vote without the consent of its chair.
- The CFPB’s communications with non-U.S. Government policy or interest groups including the Student Borrower Protection Center with respect to changes to the CFPB’s examination procedures.
- All records regarding the President’s Executive Order on Promoting Competition in the American Economy, including communications between the agency and the White House.
- Issuing two letters from the Chamber’s Litigation Center detailing the CFPB’s unlawful and imprudent actions. The first letter details Director Chopra’s unlawful actions to rewrite the “unfairness” standard via a change to the agency’s examination manual. The second letter describes four other legally dubious actions, including its “Policy Fellowship Program,” changes to administrative adjudication procedures, changes to supervision of non-depository financial institutions, and issuance of an “interpretive rule” announcing new authority for state attorneys general.
Neil Bradley, executive vice president and chief policy officer at the Chamber, said that “Chopra is laying the groundwork to force the financial services sector to comport with his personal vision of the appropriate size of companies and what products and services should be offered and under what conditions. “No previous CFPB Director has thought they had such power. Rohit Chopra’s radical agenda and reckless actions will only hurt consumers, businesses, and our economy, and he needs to be held accountable.” In a statement, Bradley added that the Chamber’s “goal is to really draw attention in Washington — I think one of our big concerns is that there are really major changes just kind of happening without much attention. We think there does need to be greater congressional oversight, and that may be more likely after election season but we think it should be a priority.”
Politico asked the Bureau to comment and bureau spokesperson Allison Preiss said that “[s]care tactics orchestrated by lobbyists for Big Tech and Wall Street won’t deter the work of the CFPB to enforce the law. We remain focused on ensuring fair, transparent, and competitive markets for American consumers and honest businesses who play by the rules. Big corporations and their lobbyists want to preserve a system where American families and small businesses are left to fend for themselves against those that repeatedly violate the law.”
The Chamber on Tuesday also joined three trade groups — the Consumer Bankers Association, the American Bankers Association, and the Independent Community Bankers of America – in sending Chopra a white paper they had commissioned on the UDAAP change.