As BuzzFeed notes, Republicans are able to make these major changes with simple majorities thanks to the Congressional Review Act:
Republicans are now moving to reverse the rules, using a fast-track process enabled by the Congressional Review Act, in which simple majorities in both houses of Congress can eliminate a recently-finalized regulation, with the president’s approval.
Consumer advocates have long called for limitations on overdraft fees, warning that prepaid cards were becoming credit services. Yet a Georgia-based financial company named Total System Services lobbied hard for the repeal of the new rules that barred prepaid card companies from charging overdraft fees. Total System Services owns NetSpend, a prepaid debit card provider that told investors it made roughly $85 million on overdraft fees last year.
Prepaid debit cards are disproportionately used by low-income people.
The Republican argument is that the regulations promulgated by the CFPB were sweeping and would stifle economic growth. Perdue, a former businessman and CEO of Reebok and Dollar General Stores, said at Yahoo’s All Markets Summit that the CFPB had acquired too much authority, calling it a “rogue agency” that does not have any oversight in Congress.
“If the CFPB wants to continue to impose rules and regulations that impact every American’s financial well-being, it must answer to the American people,” Perdue said earlier when the bill was introduced.
The CFPB was created with Dodd-Frank, the financial reform law passed in the wake of the financial crisis. President Trump has pledged to repeal Dodd-Frank, which would eliminate the CFPB. House Minority Leader Nancy Pelosi vowed on Monday to fight to protect the CFPB and the GOP’s attempt to water down consumer protection regulations.
Author: Taylor Link