Vought: CFPB enforcement should be based on ‘clear violations of the law’

Acting CFPB Director Russell Vought expressed support for several bureau reforms that would provide credit unions with regulatory relief in testimony before the House Financial Services Committee on Wednesday.

“Regulations should be justified by statute, not the whims of ideologues at the Bureau. Supervision should be precisely targeted to avoid stifling economic growth and innovation and disproportionately increasing compliance costs,” he said. “And enforcement should be based on clear violations of law—not on advancing a political agenda outside of accountability and oversight from elected officials and the American people.”

Vought added he believes the bureau to be “structurally defective, and I do not believe it should exist in its current form,” and said ultimately the CFPB must be subject to the appropriations process. 

In response to a question from Rep. Bryan Steil (R-WI), Vought said the CFPB is not looking to get involved with the insurance market. America’s Credit Unions supports bills introduced in both chambers to specifically exempt the business of insurance from CFPB oversight.  

Rep. Bill Huizenga (R-MI) encouraged members of the committee to support his bill to replace the single CFPB director with a multi-member commission.

The hearing also featured discussion of draft legislation, the CFPB Reform Act of 2026, which would:

• Bring the CFPB under the appropriations process;
• Raise the supervisory threshold for very large financial institutions to $21 billion (up from the current $10 billion); 
• Increase Congressional oversight of the CFPB; and 
• Provide greater clarity on unfair, deceptive, or abusive acts or practices (UDAAP).

Vought is scheduled to testify before the Senate Banking Committee today. America’s Credit Unions submitted a letter to the committee in advance of the hearing, as it did prior to yesterday’s hearing, outlining CFPB actions to reduce burdens on credit unions.