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Washington, D.C. — The Consumer Financial Protection Bureau (CFPB) and other financial regulators would be severely weakened by legislation approved today by a House committee over the opposition of the National Treasury Employees Union (NTEU).

NTEU urges the full House to reject H.R. 10, the so-called CHOICE Act, because it would gut the CFPB, an independent office that has so far returned nearly $12 billion to consumers who were cheated by banks and other financial institutions.

The CFPB has only been around since 2011 but in that time has become a powerful force in shielding borrowers and investors from unscrupulous financial practices by investigating consumer complaints and imposing fines on bad actors.

“This legislation is more appropriately called the Wrong Choice Act because it favors big banks over regular Americans,” said NTEU National President Tony Reardon. “The CFPB has a stellar record of looking out for people who need help to pay for college or finance a new car or make ends meet when they return from a military deployment. Congress should want to insulate them from predatory lending practices, not expose them.”

The bill also weakens the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the National Credit Union Administration, undercutting the government’s network of financial cops. By subjecting these agencies to the congressional appropriations process, they would be less independent and prone to politicization.

It would also expose those federal employees to the Holman Rule, which allows lawmakers to slash the salaries of individual workers to $1, effectively firing them at will. And it would eliminate the Securities and Exchange Commission Reserve Fund, which limits the commission’s resources.

Reardon wrote to all members of the House Financial Services Committee urging them to vote against the bill.

“The CFPB employees, whom our union represents, have performed incredible service to the public,” Reardon wrote on April 28. “Were this legislation to pass, there would be massive layoffs at CFPB including employees who were involuntarily transferred from other banking institutions.”

The “Wrong Choice Act” does not include a provision allowing those employees to return to their former agencies.

“Frankly, I am astounded that Congress would even consider making such profound changes to the work and duties of the financial regulatory agencies without providing for any employee transition safeguards,” Reardon wrote. “The Wrong Choice bill simply ignores the contributions these federal employees make to protecting American depositors, consumers and investors.”

The dedicated civil servants at these agencies make sure banks, credit unions, credit-card issuers, mortgage companies, securities and commodities trading firms and others in the financial industry follow federal laws and regulations, treat their customers and investors fairly, and refrain from taking risks that could jeopardize the entire economy.

“We commend House Financial Services Committee Ranking Member Rep. Maxine Waters (D-Calif.) and others for standing up to Wall Street and opposing this bill in committee,” Reardon said. “We hope Congress recognizes the harm this bill would do to the American economy, to taxpayers, and to our nonpartisan federal watchdogs.”   

NTEU represents 150,000 employees at 31 federal agencies and departments.