On July 24, the House Financial Services Committee requested public feedback on a discussion draft of the “CFPB Reform Act of 2026,” legislation that would restructure the Bureau’s authorities and oversight activities. The request follows a full committee hearing on the CFPB’s semi-annual report that focused heavily on the Bureau’s future. Key reforms in the draft legislation include moving CFPB funding into the annual congressional appropriations process; providing greater clarity and durability around the Bureau’s use of its “abusiveness” standard in supervision and enforcement activity; adding stronger guardrails to its rulemaking authority; and reducing the CFPB’s reliance on enforcement actions as a vehicle for setting regulatory policy. The Committee has set an August 21 deadline for comments.
NIADA has long maintained that Congress needs to reform the CFPB to ensure it exercises its authority fairly and consistently. In that spirit, NIADA is drafting a comment letter with additional recommendations aimed at improving the regulatory environment for institutions subject to CFPB oversight with an emphasis on independent automobile dealers. NIADA will share our feedback upon submission to the Committee later this month.
