House Republicans used a July 14 hearing to accuse those settingup the new Consumer Financial Protection Bureau of not disclosingenough information and for not spelling out what financial productsit plans to target for increased scrutiny.

“At the core of our mandate is the prevention of waste, fraudand abuse in the federal bureaucracy, and there is no question thatimproved efforts to combat deceptive practices in the financialsector are needed. Neither is there a reason why the administrationshould avoid a candid, transparent account to Congress about itspolicy and practices in this regard,” House Oversight andGovernment Reform Committee Chairman Darrell Issa, said.

Elizabeth Warren, who has been leading the set up of the CFPB,said her staff has been responsive to inquiries and the bureau willbe transparent about its finances and its contacts withindividuals. She said that they would protect consumers byexpanding disclosure requirements and doesn't expect to ban certainfinancial products or take measures to raise compliance costs.

Rep. Ann Marie Buerkle (R-N.Y.) said that in light of highunemployment rate, she is concerned that any actions by the CFPBwould raise compliance costs and cause companies to cut back ontheir hiring even more.

Warren responded that one of the bureau's first efforts will beto combine the disclosure forms required by the Real EstateSettlements Act (RESPA) and the Truth in Lending Act (TILA). Thiswill make the process simpler for consumers and cheaper forfinancial institutions. She noted that the bureau has worked withbanks and credit unions in its efforts.

Buerkle then asked if the bureau will “never ever” make rules orpolicies that raise compliance costs. Warren said the bureau's workon RESPA and TILA will be a template for future efforts.

Rep. Patrick McHenry (R-N.C.) asked if the bureau saw anyfinancial products it thought were so harmful that they should bebanned.

Warren replied, “No, do you have a suggestion?”

McHenry said, “No, I don't have a half a billion dollar budgetor 400 people working for me.”

Rep. Trey Gowdy (R-S.C.) asked whether payday lenders, whosepractices Warren has criticized should be banned.

Warren replied that the bureau will have the responsibility toregulate those lenders and it has have a wide range of toolsavailable to improve the products.

Democrats on the panel said the bureau was needed because ofnumerous instances in which military personnel and others had beenpreyed on by unscrupulous financial institutions.

Rep. Jim Cooper (D-Tenn.), who noted that he opposed last year'sfinancial overhaul bill that created the bureau, criticized thetone of the hearing.

He said there have been “partisan food fights” that isn't anexample of good governance. Cooper said that Warren had been“treated with rudeness and disrespect by some committeemembers.”

Warren's testimony occurred one week before the bureau beginsformal operation. It will be enforcing regulations currentlyenforced by seven government agencies, including the NCUA.President Obama hasn't yet named a permanent director of theCFPB.