Entrance to the CFPB headquarters. (Source: Shutterstock)
Two key Democratic senators are warning the CFPB against adopting a plan to issue advisory opinions for financial companies that request them.
"We have serious concerns that issuing advisory opinions tailored to companies' specific circumstances is not appropriate, especially if companies could use these opinions to circumvent consumer financial laws or as a defense in litigation by the Bureau or other parties," Senate Banking Committee ranking Democrat Sherrod Brown of Ohio and Sen. Elizabeth Warren (D-Mass.), wrote in a letter to agency Director Kathy Kraninger last week.
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The two senators said that recent reports indicate that the CFPB is considering adopting a process that would allow an individual company to request a review of specific policy.
The senators said that while guidance may be appropriate in certain circumstances, that guidance should be broadly applicable to industry, not specific companies.
Trump Administration officials and congressional Republicans have condemned the use of general guidance, saying that it is not opened for public comment before it is finalized.
The senators said that if adopted, the CFPB policy could allow political appointees at the agency to unduly influence how consumer protection laws are enforced. They asked Kraninger to reply by Dec. 19, providing details of the plan.
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