Transparency in CFPB Cost-Benefit Analysis Act

This bill would require the Consumer Financial Protection Bureau (CFPB) to be more open and thorough when it proposes new rules. Each proposal must be fully published, explain why the rule is needed, check if other federal rules already cover the issue, and show how any overlaps would be handled. It must study costs and benefits for consumers, small businesses, and governments, look at reasonable alternatives, and explain its data, studies, and assumptions. When possible, it should also estimate the range of likely outcomes. If small business costs would rise, the CFPB must consult the Small Business Administration’s Office of Advocacy. If benefits don’t clearly beat the costs or the alternatives, the Bureau must provide a clear justification. It must also explain who will carry most of the burden, including whether consumers or small businesses are hit hardest.

• Who is affected: The CFPB; companies it regulates (like lenders and financial services); consumers and small businesses that could bear costs or benefits from new rules.
• What changes: More detailed public explanations; checks for overlapping rules; cost-benefit studies (including for small businesses); review of alternatives; disclosure of data and assumptions; and, when feasible, estimates of outcome ranges.
• When: These requirements would apply to future CFPB proposed rules if this bill becomes law.