Sponsors (7)
The bill reduces CFPB oversight and compliance burdens—lowering costs for lenders and modestly cutting federal enforcement spending—while substantially weakening consumer protections and oversight, which raises financial risk for vulnerable Americans and creates legal uncertainty.
Banks and small lenders (including community and specialty lenders) would face fewer CFPB compliance requirements and less overlapping federal supervision, reducing regulatory and compliance costs and simplifying operations.
Taxpayers could see modest reductions in federal enforcement and supervision spending related to CFPB investigations and oversight.
Millions of consumers—particularly low-income and middle-class households—would lose CFPB protections against abusive lending and unfair practices, reducing consumer safeguards and increasing exposure to harmful financial products.
Reduced centralized supervision could weaken oversight of high-risk products (payday loans, debt collection, mortgage servicing), raising financial harm and destabilizing outcomes for vulnerable consumers.
Restoring pre-2010 regulatory authorities and rolling back CFPB rules would create legal uncertainty and transitional costs, likely increasing litigation and compliance expenses for both firms and consumers as old provisions are disputed and reinterpreted.
Based on analysis of 2 sections of legislative text.
Repeals the 2010 law that created the CFPB and restores pre-2010 statutes and regulatory arrangements as if the 2010 Act never existed.
Introduced February 26, 2025 by Byron Donalds · Last progress February 26, 2025
Repeals the Consumer Financial Protection Act of 2010 and removes the statutory foundation for the Consumer Financial Protection Bureau (CFPB). It directs that any laws the 2010 Act changed be restored as if that Act had never been passed, returning federal consumer financial oversight to the pre-2010 legal framework immediately upon enactment. The change would eliminate the CFPB’s statutory authorities and restore prior statutes and regulatory arrangements, creating immediate legal and regulatory shifts for consumers, banks, nonbank lenders, state regulators, and federal agencies that previously handled consumer financial protections.