Zywicki Provides Hill Testimony on CFPB Oversight
Professor Todd Zywicki made a May 24 visit to Capitol Hill, where he gave testimony in a House Committee on Oversight and Government Reform, Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs hearing. The subject of the hearing was "Who's Watching the Watchmen: Oversight of the Consumer Financial Protection Bureau."
Zywicki told the committee that while he remained strongly in favor of regulatory reform dealing with consumer financial protection, "with the CFPB, we've squandered a golden opportunity to create new, useful safeguards for consumers that would promote competition, consumer choice and consumer protection simultaneously."
He stated his concern that the CFPB was poised to become "a monster of an agency that is going to reduce access to credit, increase the cost of credit and, ironically, have the unintended consequence of probably exposing more consumers to fraud and abuse" with respect to lending products.
Zywicki suggested in his statement that oversight of the CFPB should be modeled after the Federal Trade Commission, a multimember commission with internal checks and balances, rather than allowing it to operate without any budget oversight.