By Mike Hothi
House Republicans expressed concerns over the reach of the Consumer Financial Protection Bureau (CFPB) on Wednesday, once again calling for more oversight.
“My fear is that there is simply no check and balances. It can easily become a loose cannon,” said Rep. Spencer Bachus (R-Ala.), Chairman of the full House Financial Services Committee. “The director has unprecedented power to ban financial products and services based on whether or not he deems them unfair, deceptive or abusive — under really a highly subjective standard.”
Raj Date, who ascended to his role atop the bureau following Elizabeth Warren’s departure, did his best to defend the agency from the onslaught of Republican critiques, specifically those critical of the authority held by the agency’s lone director.
“If you do not make someone singularly responsible for a hard job, you should not expect that it gets done well,” Date said. “I typically look for management teams that are headed by a person who knows that they are on the hook, so that you know who to credit and who to blame. Somebody has to be on the hook for hard jobs.”
The hearing marks another chapter in a long series of debates over the bureau’s authority and its consumer-driven regulations and Date will continue to bear the brunt of Republican critiques until President Obama’s nominee to head the agency, Richard Cordray, is confirmed in the Senate.
Benny Martinez contributed to this story…