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Midnight Agency Power Grab Would Increase Identity Theft, Fraud, and Compliance Cost

Bureaucrats at the Consumer Financial Protection Bureau propose new rule to expand their power before President Biden leaves office at the expense of consumers and employers.

NAPLES, FL– Today, the Foundation for Government Accountability (FGA) issued a strong warning against efforts to expand the authority of the Consumer Financial Protection Bureau (CFPB), a small agency that has already vastly exceeded its authority. This week, CFPB issued a statement regarding a proposed rule that would hand the agency vast new powers to regulate new swaths of industry based on the reinterpretation of a 50-year-old law. 

If this rule moves forward, many businesses that currently don’t meet the Fair Credit Reporting Act (FCRA)’s definition of a “consumer reporting agency” could be subject to FCRA regulation. In turn, this would create new compliance requirements and risks for these businesses, limiting the use of data necessary to protect consumers against fraud and identity theft.

“CFPB seems to have changed its mission from ‘protectingconsumers’ to ‘empowering bureaucrats.’ This new rule is partof the Biden administration’s pattern of using and abusing agency rulemaking to expand government power,” said Nick Stehle, Vice President of Communications at the Foundation for Government Accountability. “It is an unlawful overreachthat would hamstring businesses and leave Americans more vulnerable to fraud and identity theft.”

“Instead of adding new limbs to the Washington bureaucracy, we should focus on pruning everything that isn’t essential to improving the lives and livelihoods of Americans,” added Stehle.

This is not the first time this federal agency has attempted to expanded its authority. Last year, FGA filed a brief at the Supreme Court arguing CFPB’s attempts to gain funding outside of the congressional appropriations structure wasunconstitutional. Like many federal agencies, the Biden administration successfully shifted CFPB into a highlypoliticized and autonomous weapon harming employers and consumers.

“FGA will continue our fight to bring accountability to yet another federal agency weaponized by this partisan administration. This collection of rogue bureaucrats cannot be allowed to grant themselves new privileges during the midnight hour as they fear their time in power slipping away,” said Stehle. “Congress should make law, not unelected bureaucrats. We look forward to working with the next Congress and incoming administration to reorient the federal government to focus on expanding American opportunity, not bureaucratic power in Washington.”

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The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that promotes public policy solutions to create opportunities for every American to experience the American Dream. To learn more, visit TheFGA.org.

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