Larson Slams GOP Over Vote to Block Consumer Protection Law

WASHINGTON – After blocking Elizabeth Warren for Consumer Financial Protection Bureau (CFPB) Chief earlier this week, GOP leadership in the House of Representatives again voted to weaken the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act on the one-year anniversary of its signing into law. This afternoon Congressman John Larson (CT-01) again slammed Republicans for siding with Wall Street over consumers.

Thanks to Dodd-Frank, Americans have a new advocate – the Consumer CFPB - to protect consumers from the abusive practices that contributed to the financial collapse of 2008. Under the GOP bill, the CFPB will be hamstrung in their ability to hold big banks accountable and ensure American consumers get a fair deal on financial products including credit cards and home mortgages.

"Republicans must choose whose side they're on," Congressman Larson said. "Will they stand with the American people who deserve an opportunity to make financial decisions based on fair and honest information – without hidden fees or sudden interest rate changes? Or will they stand with big banks and Republican leaders who continue to protect massive tax breaks for Wall Street executives while at the same time are asking Americans to give up Medicare benefits? Wall Street reform does a lot to help consumers, but those reforms won't work if we don't let the cops patrol the beat."

Wall Street Reform and the CFPB provide American families with a measure of security against abusive behavior – including hidden credit card fees, deceptive fine print and interest rate hikes. Since its establishment, the Bureau has worked to create a consumer complaint process, make it easier for Americans to combat abusive products, make credit card fees more understandable, and protect service members.

Unfortunately, Congressional Republicans continue to stand on the side of big banks, who worry that consumer protections may hurt their profit margins. Just this morning, during an interview on Dodd-Frank, Republican Chairman Spencer Bachus (AL-06) of the House Committee on Financial Services expressed the majority's view saying, "[…]we do worry about a consumer protection agency whose sole goal is to benefit consumers."

The Republican bill (H.R. 1315) would undermine the ability of the Bureau to protect consumers by creating significant barriers to its efficient operation. It would replace its director with a five-member commission, increasing the probability of gridlock; enable another agency to block new protections; and leave consumer protections up to the political whims of the Senate.

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