Permanent advisory panels would be created to ensure that small businesses and community banks have input on the Consumer Financial Protection Bureau’s (CFPB) rulemaking process under legislation reintroduced last week by U.S. Sen. Mike Rounds (R-SD).
Three advisory panels would be established to make certain CFPB considers the local impact of its rulemaking under the Bureau of Consumer Financial Protection Advisory Board Enhancement Act, S. 1963. Rounds, a member of the Senate Banking, Housing, and Urban Affairs Committee, reintroduced the bill with U.S. Sen. Angus King (I-ME).
“It is crucial that rural states like South Dakota have a seat at the table when the CFPB decides to write new rules that can dramatically impact their economies,” Rounds said. “The bipartisan legislation that Sen. King and I introduced will make sure small businesses, local credit unions and community banks are appropriately represented in the CFPB’s rulemaking process. If we can’t get rid of the CFPB entirely, we should at least be able to exert control over this bureaucracy.”
Established under the Dodd-Frank Wall Street Reform and Consumer Protection Act to oversee consumer protection in the financial sector, CFPB currently relies on four advisory groups to draft policy although just one panel was required under Dodd-Frank. In addition to mandating three permanent advisory boards, S. 1963 would require that members from rural or underserved areas be added to each panel.
“Small businesses, community banks and credit unions are powerful forces in America’s economy, with rural communities across the nation relying on them to help create jobs and grow the economy,” King said. “That’s why these institutions deserve a seat at the table as the CFPB makes important and far-reaching financial decisions. I’m proud to stand with Sen. Rounds, my fellow former governor, to help give them a voice on behalf of rural America.”