Bill Overview
Title: Repeal CFPB Act
Description: This bill repeals the Consumer Financial Protection Act of 2010, which established the Consumer Financial Protection Bureau.
Sponsors: Rep. Donalds, Byron [R-FL-19]
Target Audience
Population: Individuals utilizing financial products and services
Estimated Size: 255000000
- The Consumer Financial Protection Bureau (CFPB) was created to protect consumers in the financial sector from unfair, deceptive, or abusive practices and ensure they have access to information to make informed decisions.
- Repealing the CFPB would remove this oversight and protection, affecting anyone who uses financial products such as credit cards, mortgages, and loans.
- The global financial market is interconnected; changes in U.S. financial regulations can influence global markets and consumer protection policies.
- U.S. financial institutions with international operations would be impacted, potentially affecting customers worldwide.
Reasoning
- The CFPB provides a layer of protection for consumers using financial products, reducing their exposure to unfair practices.
- Removing the CFPB could lead to increased fraud or deceptive practices, which may lower consumer wellbeing.
- The policy budget will limit detailed oversight, potentially limiting consumer protection and information dissemination.
- Many individuals, especially low-income and financially vulnerable groups, would feel significant negative impacts from the policy change.
- The policy would affect common people in varying sectors, so a range of jobs and demographics are considered.
Simulated Interviews
Marketing Manager (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I appreciate having a bureau that looks after consumers like me.
- Without the CFPB, I would be more worried about being scammed or misleading financial info.
- I feel the CFPB helps ensure financial products are fair.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 4 | 7 |
| Year 10 | 4 | 7 |
| Year 20 | 4 | 7 |
Small Business Owner (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Repealing the CFPB could mean more unscrupulous practices from lenders.
- I rely on fair practices for my business loans.
- The CFPB repeal might lead to less trust in financial markets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 3 | 6 |
| Year 10 | 3 | 6 |
| Year 20 | 3 | 6 |
Freelancer (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- I suspect removing the CFPB will bring more chaotic financial products.
- I can't afford to fall into debt traps or deal with unfair credit terms.
- Consumer protection is essential for financial security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 3 | 5 |
| Year 5 | 2 | 5 |
| Year 10 | 2 | 5 |
| Year 20 | 2 | 5 |
Primary School Teacher (Chicago, IL)
Age: 54 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I'm worried that without CFPB oversight, lenders might exploit consumers like me.
- I feel safer knowing someone is checking banks and lenders.
- Repealing the CFPB feels like a step backward in consumer rights.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 4 | 7 |
| Year 20 | 4 | 7 |
Retired (Phoenix, AZ)
Age: 70 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- The CFPB provides good oversight, preventing elder financial abuse.
- Without it, people like me are more vulnerable to scams.
- Consumer protection is crucial for retirees' peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
College Student (Atlanta, GA)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 18/20
Statement of Opinion:
- I'm just learning about financial products and the CFPB helps me feel more secure.
- I fear that without them, I'll be easily misled.
- Financial literacy is as important as financial protection.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 6 |
| Year 20 | 4 | 6 |
Software Engineer (Miami, FL)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I'm concerned that repealing the CFPB will make financial markets less transparent.
- I value the protection they offer against unfair financial products.
- Changes in regulations will affect my investment decisions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Bartender (Denver, CO)
Age: 26 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Without the CFPB, I worry about ending up in more debt traps.
- Consumer protection helps people like me who are already struggling financially.
- I need clear, fair terms from financial products.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 3 | 4 |
| Year 2 | 3 | 4 |
| Year 3 | 3 | 4 |
| Year 5 | 2 | 4 |
| Year 10 | 2 | 4 |
| Year 20 | 2 | 4 |
Nurse (Seattle, WA)
Age: 33 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 16/20
Statement of Opinion:
- The CFPB helps ensure loans and credit terms are fair.
- Repealing it could make me more cautious about financial products.
- It's comforting knowing there's oversight in place.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 6 |
| Year 20 | 4 | 6 |
Construction Worker (Buffalo, NY)
Age: 58 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- I worry about being taken advantage of without CFPB protections.
- Payday loans can be predatory and I need fair terms.
- Consumer oversight has real impacts on people's lives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 3 | 5 |
| Year 5 | 3 | 5 |
| Year 10 | 3 | 5 |
| Year 20 | 3 | 5 |
Cost Estimates
Year 1: $480000000 (Low: $450000000, High: $510000000)
Year 2: $570000000 (Low: $540000000, High: $600000000)
Year 3: $630000000 (Low: $610000000, High: $670000000)
Year 5: $680000000 (Low: $640000000, High: $700000000)
Year 10: $700000000 (Low: $670000000, High: $730000000)
Year 100: $700000000 (Low: $670000000, High: $730000000)
Key Considerations
- Repealing the CFPB would eliminate its consumer protection role, potentially exposing consumers to higher risks of abusive practices.
- The transition and reallocation of functions currently performed by the CFPB might entail additional costs.
- Long-term impacts on the financial sector's stability and consumer confidence are uncertain.