Consumer Financial Agency Needs More Small Business Input
Subscribe today for Free Enterprise Updates
- Latest business trends and best practices
- News about legislation and regulation impacting business
- Business how-to articles from industry experts
- Commentary and interviews with newsmakers in business and politics
The Dodd-Frank financial reform law contains provisions that require the Consumer Financial Protection Bureau (CFPB) to analyze a potential rule’s impact on small businesses and to ensure that they have plenty of input before rules are finalized. Making sure small business concerns are heard and taken into account when crafting these regulations isn’t just good policy, it’s the law. The House Committee on Small Business held a hearing on whether the CFPB is living up to that standard.
Members of the Committee expressed concerns at the hearing:
Rep. Allen B. West, Florida Republican, questioned whether the CFPB’s one-week notice period was enough time for business to adequately prepare their complaints on a proposed piece of regulation.
Mr. Cordray [CFPB Director] responded by saying, “In retrospect we would have preferred to have more time to prepare the panels.”
A coalition of business associations, including the U.S. Chamber, think the CFPB hasn't taken small business concerns enough into account. A letter sent to the committee notes that while the CFPB has completed or worked on 25 rules, it has only convened three small business review panels. Also, the CFPB has not analyzed how the rules would affect small businesses as required by law, and has been only making panel reports public when the proposed regulation is released.
As the coalition letter states, more input and transparency from the small business community will ensure “that any final regulation maximizes benefits while minimizing costs.”