House Financial Services Committee Advances Sweeping CFPB Reform Bill

Legislative Snapshot

• Bill: H.R. 10184, Consumer Financial Protection Accountability and Reform Act of 2026
• Jurisdiction: Federal
• Status: Ordered reported, as amended, by the House Financial Services Committee, 28-21
• Key Provisions: Congressional appropriations for the CFPB, dedicated inspector general, cost-benefit requirements, changes to UDAAP enforcement, attorney litigation protections, revised civil money penalties and consumer complaint reforms
• Effective Date: Varies by provision if enacted
• Industry Impact: Would materially change CFPB rulemaking, supervision and enforcement procedures affecting debt collectors, debt buyers, collection law firms and other consumer financial services providers

The House Financial Services Committee voted 28-21 on Sept. 16 to advance legislation that would substantially change the Consumer Financial Protection Bureau’s funding, rulemaking, supervision and enforcement authorities. The Consumer Financial Protection Accountability and Reform Act of 2026 now moves forward in the House after clearing the committee on a recorded vote.

H.R. 10184, introduced by Financial Institutions Subcommittee Chairman Andy Barr, R-Ky., would place the CFPB under the congressional appropriations process, create a dedicated inspector general and impose new requirements governing rulemaking and enforcement. The introduced legislation spans five titles addressing bureau governance, legal standards, consumer financial markets, supervision and enforcement.

Bill Would Reshape CFPB Rulemaking and Oversight

Among the bill’s most significant provisions is the elimination of the CFPB’s existing Federal Reserve funding mechanism. It would also establish a separate CFPB inspector general appointed by the president and confirmed by the Senate.

For rulemaking, the legislation would require detailed quantitative and qualitative assessments of anticipated costs and benefits, including compliance costs, effects on access to financial products and the cost of credit. Major CFPB rules would also undergo retrospective review by the Office of Management and Budget.

Committee Chairman French Hill, R-Ark., said during the markup that the legislation is intended to establish additional accountability and transparency requirements while maintaining the bureau’s consumer protection role.

Enforcement Changes Could Affect the ARM Industry

Several provisions have direct implications for debt collection agencies, debt buyers and collection law firms.

H.R. 10184 would require the CFPB to define “abusive act or practice” through rulemaking and would prevent the bureau from bringing actions based on abusive conduct until that rule takes effect. It would also establish a good-faith compliance defense against certain monetary relief and create notice-and-cure procedures for covered entities that self-identify potential unfair, deceptive or abusive acts or practices.

The bill would also change the treatment of attorneys engaged in litigation. Licensed attorneys and law firms would be excluded from the Fair Debt Collection Practices Act’s definition of “debt collector” to the extent they are engaged in defined litigation activities to collect debts for clients. Federal agencies would also be barred from exercising supervisory, enforcement or regulatory authority over those litigation activities.

Civil money penalties would be revised, with self-reporting added as a mitigation factor. The CFPB could establish a penalty matrix intended to make assessments more consistent and predictable.

Consumer Complaint Process Would Change

H.R. 10184 would impose new requirements on consumers submitting CFPB complaints, including an attestation under penalty of perjury that information is accurate and that the consumer contacted the company about the issue at least 60 days before submitting the complaint.

Companies could close certain complaints deemed duplicative, frivolous, unauthorized or fraudulent. The legislation would also prohibit the CFPB from publicly publishing consumer and company narrative responses, although aggregated complaint data and trend analyses could remain public.

Separate CFPB Investigation Bill Also Advances

The committee separately approved H.R. 1653, the Civil Investigative Demand Reform Act of 2025, by a 29-20 vote. The measure would impose additional procedural requirements on CFPB civil investigative demands, including requirements concerning the factual basis and scope of investigations.

Hill said the CID legislation is intended to ensure investigative demands have a factual basis, reasonable scope and meaningful opportunity for review.

The committee’s approval of H.R. 10184 followed a largely divided markup. Five amendments offered to the CFPB reform package were rejected by identical 28-21 votes before the committee voted to report the amended bill.