U.S. Representative Ed Royce (R-CA) questioned Consumer Finance Protection Bureau (CFPB) Director Richard Cordray at The Semi-Annual Report of the Consumer Financial Protection Bureau hearing held by the House Financial Services Committee.
"I have heard strong criticism that the CFPB is conducting regulation of financial products and services through enforcement actions and guidance bulletins rather than notice-and-comment rulemakings, which traditionally include input from the public and Congress," said Rep. Royce. "The CFPB promotes the bulletins as statements of law and policy and the enforcement actions as deterrents, yet in both cases the agency appears to be making policy without obtaining public input. This trend is a cause for concern, as the lack of public input during policy formulation often leads to unintended consequences including regulatory confusion and less consumer choice."
Rep. Royce questioned Director Cordray on the potential use of advisory opinions to help businesses seeking clarification on specific practices before enforcement action is contemplated.
“That is something we are looking to do in appropriate cases," said Cordray. "I do think that we can probably do more in this area. Yes.”