[Congressional Record Volume 161, Number 114 (Tuesday, July 21, 2015)]
[Senate]
[Pages S5197-S5198]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONSUMER FINANCIAL PROTECTION BUREAU
Mr. PERDUE. Mr. President, 5 years ago today, President Obama signed
into law the Dodd-Frank Act. Following the 2008 financial crisis,
Washington passed this 2,300-page bill, creating more burdensome
regulations that did not solve the crisis, and, in many ways, made it
worse. You are going to hear a lot about the failures of the Dodd-Frank
Act over the next few years.
From what was intended to rein in five major banks who led us into
trouble in the 2008 crisis, has created unintended consequences today
that are affecting thousands of small town regional banks across our
country. I rise today to speak about one agency created by the Dodd-
Frank law, the Consumer Financial Protection Bureau, or the CFPB. While
many Americans may not have heard of the CFPB before, they will in the
future. This agency touches every aspect of people's lives, from credit
card records, mortgage applications, student loans, and car sales to
much more.
The CFPB seemingly knows more about American consumers than we know
about the very agency that is supposed to be protecting them. According
to a report by the Government Accountability Office, every month the
CFPB scrubs data on credit card transactions, debit card transactions,
consumer mortgage loans, car loans, and hundreds of thousands of other
personal financial information. This leads to several questions. Why
are they collecting this information in the first place? How does
collecting credit card statements help protect consumers? How secure is
all of this data?
Unfortunately, we know very little about what the CFPB is doing with
all of this sensitive information, except looking for additional
opportunities to regulate. Remember, before 2009 we already had six
prudential regulators mandated, among other things, to protect the
consumer. Yet as a result of 2008, instead of streamlining and
consolidating, we actually added a seventh prudential regulator charged
with consumer protection, the CFPB.
Today, the CFPB operates on top of the existing regulators, in
addition to--not in replacement of--these agencies, and duplicating
efforts among these other agencies. By design, Dodd-Frank ensured that
the CFPB does not have the same oversight control as other agencies.
Currently, Congress does not even have control over how the Bureau
spends its funds or is even appropriated.
The CFPB operates outside the regular appropriations process of
Congress, which other independent agencies, such as the Securities and
Exchange Commission, the Federal Trade Commission, the Consumer Product
Safety Commission, and others, are all subject to. Why would any
government agency with access to that much consumer data be
unaccountable to Congress? Recently, I introduced legislation to help
shed more light on this agency and bring the CFPB under the
appropriations process of the Congress. The sheer volume of consumer
data being collected by the CFPB is concerning and ripe for abuse.
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In fact, the GAO and the Federal Reserve inspector general both have
warned about the need for increased security. Without full
congressional oversight, how can we be sure this consumer data is
secure? What kind of records does the CFPB keep? How would we know if
it has been compromised? We have already seen the devastating effect of
data breaches all over our Federal Government, and the damage it is
doing to the American people across all sectors of our government,
including the most recent OPM data breach, impacting millions of
Americans and some of our intelligence assets abroad.
We have seen the potential exposure of extremely sensitive national
security information. Also, we recently had a debate about privacy
regarding the NSA metadata program. Many of my colleagues expressed
outrage for the scope of the NSA program, even when the mission was
protecting national security. We are now talking about an agency
collecting massive amounts of personal consumer data, many times more
data than the NSA program.
The CFPB's goal claims to be consumer protection. For all we know,
this information they are collecting is even more susceptible to
security threats and security breaches. If there is one thing we can
agree upon, we need to make sure all Americans' personal information is
safe and secure--especially from Washington. If some were upset about
privacy in the NSA debate, we should certainly be paying attention to
what the CFPB is doing with this personal information today.
Getting the CFPB under congressional oversight should not be a
partisan issue. In order to protect consumers, we need to know what is
going on in the very government agency tasked with protecting them.
That is why we need to put in place more transparency--not less--more
control, and more oversight. We can start by bringing the CFPB under
congressional oversight immediately so we can actually protect
consumers and stop the potential for abuse, fraud or identity theft.
While this agency was originally designed to protect consumers, one
can only wonder how Washington's collecting so much personal
information will actually protect us. I will be speaking much more on
this topic as the weeks go by. Let it be said tonight, though, that on
the fifth anniversary of Dodd-Frank, we are beginning to look at the
unintended consequences of this rogue agency, the CFPB.
I yield the floor.
The PRESIDING OFFICER. The Senator from Wyoming.
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