Yesterday, the U.S. House Committee on Financial Services advanced a bill meant to further the Trump administration’s harmful policy priorities by shrinking the Consumer Financial Protection Bureau’s (CFPB) funding, which comes directly from the Federal Reserve. By limiting the independent agency’s access to these funds, the proposed legislation would expose the agency to political influence while making it easier for banks, lenders, and consumer reporting agencies to engage in deceptive, abusive, or unfair practices. This legislation could leave communities across the country more vulnerable to predatory and discriminatory practices in payday lending, tenant screening, debt collection, and many other areas.
Demetria McCain, Director of Policy at the Legal Defense Fund (LDF) issued the following statement in response:
“To put it simply, any attacks on the CFPB are a direct attack on the American people – especially Black communities and other people of color who have disproportionately faced discrimination, such as redlining, in the financial services market.
“The CFPB was created to address the exploitative and exclusionary practices we see at too many financial institutions. Now – over a decade since the agency’s establishment – members of Congress are working hand-in-hand with the Trump administration to roll back significant progress made in advancing fair lending, equal housing opportunities, and accountability in financial services by severely cutting the agency’s ability to fund its critical work.
“By targeting CFPB in this way, lawmakers are signaling their willingness to protect corporate profit over the constituents whom they were elected to represent. We strongly oppose the latest efforts in Congress to target the Consumer Financial Protection Bureau.”
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Founded in 1940, the Legal Defense Fund (LDF) is the nation’s first civil rights law organization. LDF’s Thurgood Marshall Institute is a multi-disciplinary and collaborative hub within LDF that launches targeted campaigns and undertakes innovative research to shape the civil rights narrative. In media attributions, please refer to us as the Legal Defense Fund or LDF. Please note that LDF has been completely separate from the National Association for the Advancement of Colored People (NAACP) since 1957—although LDF was originally founded by the NAACP and shares its commitment to equal rights.
