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Wasserman Schultz Comments during CFPB Amendment Debate

During the Appropriations Committee debate on the Fiscal Year 2017 Financial Services Appropriations bill, Rep. Wasserman Schultz made the following comments in opposition to the Palazzo CFPB amendment. Rep. Wasserman Schultz voted against the amendment.

"Thank you Mr. Chairman, I rise in opposition to Mr. Palazzo’s Amendment. The Consumer Financial Protection Bureau has undergone the lengthy process in proposing their rules related to small dollar lending and has since began a comment period to hear from the American people on their proposal. This is the time to be heard, to utilize the public comment period and provide feedback to the Bureau. Given the ongoing public comment period, which provides a forum for vigorous debate on the CFPB’s proposal, this amendment is unnecessary at best and a roadblock to consumer protection at worst. Now that the CFPB has released their proposed rules and we know what they are, I believe that they are inarguably a step in the right direction. We have an opportunity to provide feedback through the comment period and that’s the process that we need to work through. I stand with the CFPB in its efforts to protect Americans from predatory lending. Their proposal includes important provisions, such as lender reporting requirements to track loans and assess each borrower’s ability to repay. My home state of Florida has tracked loan data for over 10 years and this has been pivotal in protecting consumers and helping end the cycle of debt for many. The CFPB’s proposed rule also curbs the abusive lending practice of repeatedly attempting to withdraw funds from consumers’ accounts. This practice leads to unexpected and heavy overdraft fees for borrowers. The CFPB’s proposal will reign in this practice and preserve access to credit, which is an important balance that needs to be struck without the burden of such costs. At the end of the day, I believe that the proposed rule strikes the right balance and at this point, that any suggested changes can and should be made during the public comment period through the normal rule making process. A one year moratorium, when we clearly have time to provide feedback through the rule making process, is not constructive and impedes the important goal of striking a balance between protecting consumers and preserving access to capital. Thank you, I yield back."

Click here to watch Rep. Wasserman Schultz's remarks, which begin at 1:33:30.