Dodd-Frank effectively gave the Consumer Financial Protection Bureau (CFPB) unlimited regulatory power with little congressional oversight. The bureau’s budget is not subject to congressional appropriations—no power of the purse—because the Federal Reserve, not Congress, funds the agency. Given its independence from congressional scrutiny, the CFPB’s power to regulate is essentially a government license to destroy.
Dodd-Frank, however, specifically exempts auto lenders from the grasp of the unaccountable CFPB, but bureaucrats are going around the law and using lenders as agents of government to regulate auto dealers.
It’s time for Congress to reign in this rogue agency.