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Today, the Committee welcomes Acting Director Russ Vought to discuss the Consumer Financial Protection Bureau’s (CFPB) semiannual report to Congress.
This hearing is an opportunity to discuss what a new day at the CFPB looks like, and truly a new day in a very good way.
Finally, we have a Bureau that respects the limits of its authority.
A Bureau that follows its mandate instead of pursuing an ideological agenda.
The decisions that are made at the CFPB affect everyday life for Americans and their families.
They deserve a Bureau that recognizes a simple truth: access to affordable financial products is a key part of consumer protection.
Consumers must be treated fairly.
Bad actors must be held accountable.
I believe the best way to protect consumers is through competition, choice, and clear rules, not through heavy-handed Washington control that leaves consumers with fewer and fewer options.
In South Carolina, I hear from constituents who are working hard but still feel squeezed.
For them, a financial product is not a political talking point.
It can be the bridge between getting by and getting ahead.
That is why affordability starts with access.
As you know, many consumers choose to use overdraft services to make ends meet, but the Biden CFPB attempted to impose price controls that would have largely eliminated access to those services.
I want to stop there for a second, because it’s such an easy thing to run by, and then later on it will be attacked and demonized, but the truth of the matter is that when price controls are put in place, banks and creditors eliminate access.
The classic point is when we have the 10 percent cap conversation. Director Vought, you probably remember when we were having, as a nation, this conversation around capping credit cards at 10 percent.
The fact of the matter is that when you cap credit cards at 10 percent what you ultimately do, is you eliminate credit opportunities for those having less than a 750-credit score.
The vast majority of Americans have less than a 750-credit score, which means that they would ultimately have to go somewhere else other than a bank or a regulated entity to find access to credit, which means that they would become even in greater jeopardy than before.
We rejected that harmful rule.
When Washington writes rules that push responsible products out of the market, people do not stop needing those products. They are just left with limited choices, higher costs, and worse alternatives.
Regulatory relief is not just about banks or businesses.
It is about the impact on the people they serve.
When unnecessary rules drive up compliance costs, those costs show up as higher fees and fewer options for families and small businesses.
The rules should be clear, lawful, and focused on actual harm.
A responsible CFPB should provide clear rules of the road, so consumers, innovators, and community institutions know what is expected of them.
For too long, too many policies were built on shaky legal ground or the idea that Washington knows best.
During the Biden administration, the CFPB functioned as an activist organization that ignored statutory limits on its authority and effectively became part of the White House’s messaging operation.
That’s why virtually all of the Biden CFPB’s policies are now gone: either struck down in court, overturned by Congress, or rescinded because they were so partisan and often illegal.
In contrast, clear and durable rules help businesses compete, banks lend, and consumers access the products they need with confidence that the CFPB’s policies have staying power.
Republicans have also taken action to right-size the Bureau itself.
Congress substantially reduced the CFPB’s statutory funding cap, placing meaningful limits on an agency that had operated for too long without sufficient budgetary discipline and with bloated staffing.
Acting Director Vought, I appreciate the work you have done to rein in the agency’s overreach, rewrite problematic rulemakings, modernize supervision, and operate within a responsible budget.
Finally, we should have an honest conversation about the structure of the CFPB.
Democrats created an agency with a single Director and extraordinary power.
If they now believe one person has too much power and control over the Bureau, they should work with Republicans on structural reforms that reduce partisanship, increase accountability, and bring long-term stability to the CFPB.
The CFPB should protect consumers and preserve access by promoting competition and choice, not by imposing price controls or heavy-handed mandates.
That is the standard I will use today, and I look forward to your testimony.
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