¶ Anti-CFPB Crusader
Rep. Barr has a long history of working to undermine the Consumer Financial Protection Bureau (CFPB). This includes repeatedly introducing legislation to “rein in” what he called “the largely unaccountable” CFPB and to help mortgage lenders “circumvent” certain consumer protections. Barr has also cosponsored bills to force the CFPB to “prioritize” financial institutions in issuing industry rules and to strike down a major CFPB rule that tried to help harmed consumers sue abusive financial companies. Barr’s voting record also includes supporting bills that would have had a “crippling effect” on financial regulation and to override regulators’ expertise.
¶ Rep. Barr Has Repeatedly Introduced Legislation To “Rein In” What He Called “The Largely Unaccountable” Consumer Financial Protection Bureau (CFPB) And To Help Mortgage Lenders “Circumvent” Certain Consumer Protections.
¶ In Four Consecutive Congresses, Rep. Barr Has Introduced The Taking Account Of Bureaucrats’ Spending (TABS) Act, Which He Said Would “Rein In The Largely Unaccountable” CFPB—Consumer Advocates Have Opposed The Legislation For Undermining The CFPB’s Enforcement Capabilities While The U.S. Chamber Of Commerce Applauded Barr For The TABS Act.
February 2021: Rep. Barr Reintroduced His Taking Account Of Bureaucrats’ Spending (TABS) Act, Legislation His Office Said Would “Rein In The Largely Unaccountable” CFPB. “U.S. Congressman Andy Barr (KY-06), the Ranking Member of the House Financial Services Oversight and Investigations Subcommittee, is leading legislation to rein in the largely unaccountable Consumer Financial Protection Bureau (CFPB). Congressman Barr reintroduced the Taking Account of Bureaucrats’ Spending (TABS) Act. The TABS Act makes the funding for CFPB become part of the congressional appropriations process like virtually every other federal agency.” [Rep. Andy Barr, 02/09/21]
Barr Claimed, “‘For Too Long, The Consumer Financial Protection Bureau Has Operated Unchecked And Unaccountable To Congress,’” And Accused The Bureau Of “‘Political And Regulatory Overreaches’” Under The Obama Administration. “‘For too long, the Consumer Financial Protection Bureau has operated unchecked and unaccountable to Congress,’ said Congressman Barr. ‘Congressional oversight is essential in preventing the sort of political and regulatory overreaches as well as excessive spending that were commonplace at the Bureau in the Obama Administration.’” [Rep. Andy Barr, 02/09/21]
Rep. Barr Has Introduced The TABS Act In Four Consecutive Congresses, But None Of The Bills Advanced To A Vote In The Full House Of Representatives:
- February 2021: Rep. Barr Introduced The TABS Act Of 2021. [Congress.gov, accessed 01/19/23]
- February 2019: Rep. Barr Introduced The TABS Act Of 2019. [Congress.gov, accessed 01/19/23]
- May 2017: Rep. Barr Introduced The TABS Act Of 2017. [Congress.gov, accessed 01/19/23]
- March 2015: Rep. Barr Introduced The TABS Act Of 2016. [Congress.gov, accessed 01/19/23]
- None Of The Versions Of The TABS Act Were Voted On In The Full House Of Representatives. [Congress.gov, accessed 01/19/23]
Consumer Advocates, Americans For Financial Reform Opposed Rep. Barr’s TABS Act Of 2016 Because It Would Prevent The CFPB “From Consistently Enforcing The Consumer Protection Laws With Predictable, Independent Funding.” “Taking Account of Bureaucrats’ Spending Act of 2015. HR 1486. Roll Call #106. [...] HR 1486 would subject the Consumer Financial Protection Bureau (CFPB) to the annual congressional appropriations process. Like other federal bank regulators, the CFPB is currently insulated from the political pressure of that process. Moreover, while other bank regulators have mechanisms to increase their own independent funding, only the CFPB’s budget is capped by Congress. HR 1468 would prevent the CFPB from consistently enforcing the consumer protection laws with predictable, independent funding. AFR opposed. Introduced by Rep. Andy Barr (R-Ky.), HR 1486 was approved on April 13, 2016 by a vote of 33-20 in the House Financial Services Committee.” [Americans for Financial Reform, January 2017]
- H.R. 1486 Was Rep. Barr’s TABS Act Of 2016. [Congress.gov, accessed 01/19/23]
2017: The U.S. Chamber Of Commerce—“The World’s Largest Business Organization”—Told Barr It “Applauds” Him For Introducing The Tabs Act, Which It Said Would “Establish Traditional Constitutional Checks And Balances On, And Congressional Oversight Of” The CFPB. “The U.S. Chamber of Commerce supports H.R. 2553, the ‘Taking Account of Bureaucrats’ Spending (TABS) Act,’ which would establish traditional constitutional checks and balances on, and congressional oversight of, the Consumer Financial Protection Bureau. The Chamber strongly believes that transparent and appropriate consumer protections are important and necessary components of efficient capital markets, and that these protections can be carried out in a manner in which the Congress plays its traditional oversight role. [...] The Chamber applauds you for introducing the TABS Act and encourages the House to consider it as expeditiously as practicable.” [U.S. Chamber of Commerce, 05/25/17]
- The U.S. Chamber Of Commerce “Is The World’s Largest Business Organization,” With Membership That Includes “Leading Industry Associations And Global Corporations.” “The Chamber of Commerce of the United States is the world’s largest business organization. Our members range from the small businesses and chambers of commerce across the country that support their communities, to the leading industry associations and global corporations that innovate and solve for the world’s challenges, to the emerging and fast-growing industries that are shaping the future.” [U.S. Chamber of Commerce, accessed 01/19/23]
¶ Rep. Barr Repeatedly Introduced The Helping Expand Lending Practices in Rural Communities Act, Which Consumer Advocates Said Would “Create A Drawn-Out Petition Process” For Lenders To Appeal Their Non-Rural Designations In Order To “Circumvent” Certain CFPB Mortgage Protections.
Rep. Barr Has Introduced The Helping Expand Lending Practices in Rural Communities Act In Two Congresses:
- March 2015: Rep. Barr Introduced H.R. 1259, The Helping Expand Lending Practices in Rural Communities Act, Which Passed The House. [Congress.gov, accessed 01/19/23]
- April 2015: H.R. 1259 Passed The House By Voice Vote. [Congress.gov, accessed 01/19/23]
- July 2013: Rep. Barr Introduced H.R. 2672, The Helping Expand Lending Practices in Rural Communities Act, Which Passed The House. [Congress.gov, accessed 01/19/23]
- May 2014: H.R. 2672 Passed The House By Voice Vote. [Congress.gov, accessed 01/19/23]
In A Press Release For The 2015 Bill, Rep. Barr’s Office Claimed It Would “Provide Individuals In Rural Areas The Right To Petition For The Area To Be Properly Reclassified As ‘Rural’ And Relieve Local Community Banks And Credit Unions From Burdensome Regulations.” “Today, the House of Representatives passed H.R. 1259, the Helping Expand Lending Practices (HELP) in Rural Communities Act introduced by Congressman Andy Barr (KY-6). The bill would provide individuals in rural areas the right to petition for the area to be properly reclassified as ‘rural’ and relieve local community banks and credit unions from burdensome regulations that unfairly limit their ability to lend and help create jobs in their communities.” [Rep. Barr, 04/13/15]
2016: Consumer Advocates Americans For Financial Reform Opposed The Legislation, Arguing It Would “Create A Drawn-Out Petition Process” For Lenders To Appeal Their Non-Rural Designations In Order To “Circumvent” Certain CFPB Mortgage Protections. “H.R. 1259, the Helping Expand Lending Practices in Rural Communities Act, would create a drawn-out petition process that would allow individuals who reside or do business in a state to apply to the CFPB for the designation of an area as rural. Having this designation would allow people and businesses in those areas to circumvent certain mortgage provisions put in place by the CFPB, including Qualified Mortgage rules and the Ability-to-Repay standard. This bill is unnecessary, as the CFPB has already proposed large expansions in the designation of rural areas. Moreover, the petition process created by this legislation would be unnecessarily complex, and subject to arbitrariness. What areas are rural and underserved should be determined by a data driven process, not individual pleading.” [Americans for Financial Reform, 03/25/16]
The 2015 Version Of Rep. Barr’s Legislation Was Included In H.R. 22, The Fixing America’s Surface Transportation Act, Which Became Law In December 2015. “H.R. 1259, the Helping Expand Lending Practices (HELP) in Rural Communities Act introduced by Congressman Andy Barr (KY-06) has been included in the final conference report of H.R. 22, the Fixing America’s Surface Transportation Act, which is expected to be voted on by the House of Representatives tomorrow.” [Rep. Andy Barr, 12/02/15]
- December 2015: H.R. 22, The Fixing America’s Surface Transportation Act Became Law. [Congress.gov, accessed 01/19/23]
¶ Rep. Barr Has Cosponsored Legislation To Force The CFPB To “Prioritize” Financial Institutions In Issuing Regulations And Legislation To Strike Down A CFPB Rule Making It Easier For Harmed Consumers To Sue Abusive Financial Companies.
¶ 2018: Rep. Barr Cosponsored And Voted For H.R. 1116, The Taking Account of Institutions with Low Operation Risk (TAILOR) Act of 2017, Which Would Have Forced The CFPB And Other Regulators To “Prioritize The Costs Of Regulations To Financial Institutions,” Claiming It Would Roll Back “An Avalanche Of Red Tape” On Smaller Institutions Under Dodd-Frank.
March 2018: Rep. Barr Cosponsored And Voted For H.R. 1116, The Taking Account of Institutions with Low Operational Risk (TAILOR) Act of 2017. [Clerk of the U.S. House of Representatives, 03/14/18]
- Rep. Barr Cosponsored H.R. 1116, The Taking Account of Institutions with Low Operational Risk (TAILOR) Act of 2017. [Congress.gov, accessed 01/19/23]
- H.R. 1116 Passed The House On March 14, 2018. [Congress.gov, accessed 01/10/23]
Barr Advocated The Bill On The Floor Of The House, Claiming It Rolled Back “An Avalanche Of Red Tape On Nonsystemic Community Banks Which Are Withering On The Vine Under Dodd-Frank.” “That’s why I support my good friend from Colorado, Representative Tipton’s bill, because it gives the regulators more focus on what they should be doing instead of heaping an avalanche of red tape on nonsystemic community banks which are withering on the vine under Dodd-Frank.” [C-SPAN, 03/14/18]
Barr Also Claimed, “The Dodd-Frank Financial Control Law Has Been A Disaster For Small Institutions.” “Since 2010, the Dodd-Frank financial control law has been a disaster for small institutions, those small community banks and credit unions across our county.” [C-SPAN, 03/14/18]
Americans For Financial Reform Argued H.R. 1116 Would "Force Regulators To Prioritize The Costs Of Regulations To Financial Institutions." "This sweeping mandate would force regulators to prioritize the costs of regulations to financial institutions over the offsetting benefits to consumers and the general public. The mandate implies that regulators would be unable to act to protect the public if such action led to any significant costs to Wall Street banks." [Americans for Financial Reform, 03/12/18]
H.R. 1116 Would Allow Banks And Corporations New Ways To Challenge Consumer Protections Issued By The CFPB And Other Regulators. "If enacted, H.R. 1116 would undo these efforts by providing every financial institution overseen by agencies like the Federal Deposit Insurance Corporation (FDIC) or the Consumer Financial Protection Bureau with new opportunities to challenge rulemakings in court if they felt a regulation was not uniquely tailored to their individual firm." [House Financial Services Committee, 03/06/18]
H.R. 1116 Would Require Banking Regulators To Tailor Their Actions For Banks' "Specific Risk Profiles." "H.R. 1116 would require the federal banking regulators—the Federal Deposit Insurance Commission (FDIC), the Office of the Comptroller of the Currency (OCC), the National Credit Union Administration (NCUA), the Consumer Financial Protection Bureau (CFPB), and the Federal Reserve—to adapt their regulatory actions to the specific risk profiles and business models of financial institutions that are subject to regulation." [Congressional Budget Office, 12/12/17]
¶ Rep. Barr Cosponsored A Resolution To Invalidate The CFPB’s Arbitration Rule—Which Made It Easier For Harmed Consumers To Join Together In Class-Action Lawsuits Against Abusive Financial Services Companies—Calling The Rule “Ill-Advised” And Complained That It Would Increase Costs For Financial Services Firms.
The CFPB’s Arbitration Rule, Issued In July 2017, Made It “Easier For Consumers To File Or Join An Existing Group Lawsuit If They Are Harmed By A Financial Service Provider.” “Our new arbitration rule will make it easier for consumers to file or join an existing group lawsuit if they are harmed by a financial service provider, such as a bank or credit card company.” [Consumer Financial Protection Bureau, accessed 01/20/23]
- The CFPB Issued Its Final Rule On Arbitration Agreements On July 10, 2017. [Consumer Financial Protection Bureau, accessed 01/20/23]
The CFPB’s Arbitration Rule Prevented Financial Services Companies From “Inserting Agreements In Contracts That Prevent Customers From Filing Class-Action Lawsuits.” “The Republican-led House passed a resolution on Tuesday to block a Consumer Financial Protection Bureau (CFPB) rule that was published earlier this month; that rule prohibits financial service companies from inserting agreements in contracts that prevent customers from filing class-action lawsuits against a company. Those agreements, which have become popular in recent years, instead require consumers to settle complaints through arbitration, a less public and often less costly process favored by financial institutions.” [The Center for Public Integrity, 07/28/17]
July 2017: Rep. Barr Co-Sponsored H.J. Res. 111, A Resolution To Disapprove Of The CFPB’s Arbitration Rule. [Congress.gov, accessed 01/10/23]
- Barr Voted For H.J. Res 111, Passed The House On July 25, 2017, And Became Law On November 1, 2017. [Congress.gov, accessed 01/20/23]
After H.J. Res. 111 Was Signed Into Law, The CFPB’s Arbitration Rule Was Invalidated. “On Nov. 1, 2017, the President signed a joint resolution passed by Congress disapproving the Arbitration Agreements Rule under the Congressional Review Act (CRA). Pursuant to the joint resolution, the Arbitration Agreements Rule has no force or effect. On Nov. 22, 2017, the Bureau published a notice removing the Arbitration Agreements Rule from the Code of Federal Regulations.” [Consumer Financial Protection Bureau, accessed 01/20/23]
Rep. Barr, Who Said He Was “A Proud Co-Sponsor” Of H.J. Res. 111, Complained That The CFPB’s Arbitration Rule Would “Result In Increased Litigation Costs For Financial Services Firms” And Said, “Unaccountable People At The CFPB” Issued The Rule. “The Bureau decision to ban alternative dispute resolution will result in increased litigation costs for financial services firms, undermining their safety and soundness, forcing consumers to pay higher prices and making it more difficult to obtain credit cards and other financial services and products. That is not pro-consumer. For these reasons I’m a proud co-sponsor of this bill that would disapprove this misguided resolution. Congress should be making the laws of the land, not unaccountable people at the CFPB.” [C-SPAN, 07/25/17 (03:54:24)]
Barr Urged Congress To Vote For H.J. Res. 111 “To Block This Ill-Advised Anti-Consumer Rule.” “I urge my colleagues to vote yes to block this ill-advised anti-consumer rule and reclaim its authority under Article One of the Constitution.” [C-SPAN, 07/25/17 (03:54:24)]
Barr Added That “Congress Must Act Swiftly To Rein In The Bureau,” Which He Called An “Out Of Control Agency.” “In addition to invalidating this bad anti-consumer, pro-trial lawyer, anti-arbitration rule, Congress must act swiftly to rein in the Bureau and subject this agency, reclaiming Congress’ constitutional power of the purse over this out of control agency.” [C-SPAN, 07/25/17 (03:54:24)]
The Leadership Conference On Civil And Human Rights Urged Congress To Reject H.J. Res. 111, Arguing That “Overturning The CFPB’s Rule Will Enable Big Banks, Payday Lenders, And Other Financial Companies To Force Victims Of Fraud, Discrimination, Or Other Unlawful Conduct Into A ‘Kangaroo Court’ Process.” “On behalf of The Leadership Conference on Civil and Human Rights, I urge you to oppose H.J. Res. 111, a resolution providing for Congressional disapproval of the Consumer Financial Protection Bureau’s final rule on forced arbitration clauses. Overturning the CFPB’s rule will enable big banks, payday lenders, and other financial companies to force victims of fraud, discrimination, or other unlawful conduct into a ‘kangaroo court’ process where their claims are decided by hired arbitration firms rather than by judges and juries – harming consumers and undermining civil rights and consumer protection laws.” [The Leadership Conference on Civil and Human Rights, 07/25/17]
¶ Rep. Barr Has Voted For Legislation That Would Have “A Crippling Effect” On Financial Regulation And Would Override Regulator Expertise With An “Unelected Commission.”
¶ 2017: Rep. Barr Voted For H.R. 1009, The OIRA Insight, Reform, and Accountability Act, A Bill That Sought To Undermine The CFPB's Independence And "Would Have A Crippling Effect On The Regulation Of Our Financial System."
March 2017: Rep. Barr Voted For H.R. 1009, The OIRA Insight, Reform, and Accountability Act. [Clerk of the U.S. House of Representatives, 03/01/17]
- H.R. 1009 Passed The House On March 1, 2017. [Congress.gov, accessed 01/10/23]
H.R. 1009 Threatened The CFPB's "Freedom As An Independent Agency To Enact Regulation." The Consumer Financial Protection Bureau’s freedom as an independent agency to enact regulation could soon change due to a new bill working its way through Congress. […] The bureau wouldn’t be the only agency affected. Other independent agencies include: the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission and the National Credit Union Administration." [HousingWire, 03/10/17]
Public Citizen Argued H.R. 1009 "Would Render The Independence Of These Agencies Meaningless." "This bill would render the independence of these agencies meaningless, and make agencies critical to protecting consumers and holding Wall Street accountable, such as the Consumer Financial Protection Bureau, the Consumer Product Safety Commission, the Federal Communications Commission, and the Federal Trade Commission, independent in name only." [Public Citizen, 02/28/17]
Americans For Financial Reform Also Argued H.R. 1009 "Would Have A Crippling Effect On The Regulation Of Our Financial System." "This legislation would have a crippling effect on the regulation of our financial system. It would add an unnecessary, burdensome, and time-consuming layer of bureaucracy to the process of completing oversight rules for our largest financial institutions. It would give Wall Street lawyers numerous new tools to overturn agency actions in court, based on compliance with a lengthy, vague, and contradictory new set of analytic hurdles. Finally, it would violate the independence of financial regulatory agencies that are designed to be insulated from White House influence." [Americans for Financial Reform, 03/01/18]
¶ 2017: Rep. Barr Voted For H.R. 998, The Searching For And Cutting Regulations That Are Unnecessarily Burdensome Act (SCRUB) Act, An Anti-Regulatory Bill That Would “Prioritize Corporate Profits Over The Health And Safety Of The American Public" And Would Have Overridden Agency Expertise With An “Unelected Commission.”
March 2017: Rep. Barr Voted For H.R. 998, The Searching for and Cutting Regulations That Are Unnecessarily Burdensome Act (SCRUB) Act. [Clerk of the U.S. House of Representatives, 03/01/17]
- H.R. 998 Passed The House On March 1, 2017. [Congress.gov, accessed 01/10/22]
Oversight Committee Democrats Opposed The Bill, Arguing H.R. 998 "Would Prioritize Corporate Profits Over The Health And Safety Of The American Public." "Committee Democrats strongly oppose H.R. 998. We reject the view that this bill would be a panacea for eliminating regulations that have unnecessary regulatory costs on our economy. Through the creation of an unelected Commission, this bill would duplicate work agencies are already doing to review and repeal regulations— at a cost to taxpayers of $30 million—and it would prioritize corporate profits over the health and safety of the American public." [House Oversight Committee, 02/21/17]
H.R. 998 Would Have "Force[d] Agencies To Prioritize Between Existing Protections And Responding To New Threats To Health And Safety." "The bill establishes a regulatory 'cut-go' process that would force agencies to prioritize between existing protections and responding to new threats to health and safety." [House Oversight Committee, 02/21/17]
H.R. 998 Would Have Overridden The Expertise Of The Agencies With An "Unelected Commission." "The bill would take regulatory review out of the hands of agency subject-matter experts and place it in an unelected Commission. The Commission could devise any methodology for its review of rules, and no rules would be exempt." [House Oversight Committee, 02/21/17]
The Center For Responsible Lending Argued H.R. 998 Would Have Made It "Significantly More Difficult" For Regulations To Be Issued. "H.R. 998 would establish a new bureaucracy empowered to dismantle long-established science-based public health and safety standards and would make it significantly more difficult for Congress and federal agencies to implement essential future protections." [Center for Responsible Lending, 02/27/17]