WATCH: Senator Reverend Warnock Defends Consumer Protections Under Threat by DOGE

During a Wednesday Senate Democratic Banking Committee forum, Senator Reverend Warnock spotlighted disastrous harm for Georgia families because of the Trump Administration’s reckless attack on consumer protection, gutting the Consumer Financial Protection Bureau (CFPB)

The special hearing followed the recent news of the dissolution of CFPB, one of many federal agencies gutted by the Elon Musk-led Department of Government Efficiency (DOGE)

Senator Reverend Warnock is a member of the Subcommittee on Financial Institutions and Consumer Protection, which he chaired last Congress, and which oversees the CFPB

In partnership with Senator Reverend Warnock, CFPB addressed 266,560 complaints from Georgians, including 20,168 from servicemembers in the state

Senator Reverend Warnock on DOGE: “The CFPB is the only financial regulator dedicated solely to protecting Americans’ wallets and pocketbooks from scammers and predatory financial services companies”

Watch Senator Reverend Warnock at the special Banking hearing HERE

Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), member and former chair of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, which oversees the CFPB (Consumer Financial Protection Bureau), highlighted the benefits and savings provided by the CFPB and the disasters consequences of this new administration’s efforts to dismantle the agency.

The special hearing was organized by Ranking Member of the Banking Committee, Senator Elizabeth Warren (D-MA) and aimed to highlight the repercussions of dismantling the CFPB, which was ordered by the Elon Musk-led DOGE earlier this month.

“If you want to see what government efficiency looks like, it’s a government agency that gets this kind of response [quick], often from bad actors who don’t want to respond, and has returned some $21 billion not to the Treasury, but to the American consumer,” said Senator Reverend Warnock during the special hearing.

Some of the key witnesses included a former CFPB employee and others who had benefited from the work of the CFPB. Elon Musk was invited to the hearing, but did not attend.

Last Congress, Senator Warnock worked extensively with CFPB Chair, Rohit Chopra, to return funds and protect Georgians from future financial hardship, including:

Watch the Senator’s full remarks and line of questioning HERE.

See below transcript of the key exchange between Senator Warnock and the hearing witnesses:

Senator Reverend Warnock (SRW): “We’re here today because of an unelected billionaire – nobody elected Elon Musk – posing as co-President, is trying to delete the CFPB (Consumer Financial Protection Bureau), the only financial regulator dedicated solely to protecting Americans’ wallets and pocketbooks from scammers and predatory financial services companies.”

“The CFPB, let’s be reminded why it was created. It was created in the wake of the financial crisis that Americans saw when Wall Street bankers got bailed out while millions lost their jobs, lost their homes, lost their life savings, lost their retirements.”

“Let me get right to the questions because we all understand just how critical this issue is, but let me just point out that when you file a complaint with the bureau, the CFPB sends it directly to the company on your behalf. Americans need to know what they’re getting. Most companies respond within 15 days, it took less than that for Ms. McCall. This is a model of government efficiency, that’s the tragic irony of this moment.”

“If you want to see what government efficiency looks like, it’s a government agency that gets this kind of response, often from bad actors who don’t want to respond, and has returned some $21 billion not to the treasury, but to the American consumer.”

“One predatory practice that has increased costs on consumers that Donald Trump says he wants to address are these opaque hidden fees. If you want to address consumer costs, deal with junk fees. These fees can prevent a working mom from being able to afford a routine car repair so she can get to work. They could mean a person with diabetes cannot afford their insulin or that a family may have to skip a meal during the week to make ends meet.”

“Ms. Salas, what effects have the bureau’s policies, toward limiting junk fees had on consumers?”

Ms. Salas (MS): “We placed a lot of emphasis on looking at junk fees across different markets for consumers, we looked at the mortgage market, we looked at banks, and other finance companies in the last two or three years. And in addition to the litigation that my colleagues in the enforcement team have brought to the courts, we have instructed, we have advised companies to refund consumers – over $350 million just in the work that supervision does, and that is money that consumers, American families don’t even know it was the bureau behind the company saying ‘You must give this money back’ because again the work is confidential.”

(SRW): “So very efficient, very effective.”

“What do you anticipate happening if congressional Republicans repeal the overdraft fee rule?”

(MS): “I’m afraid we will go back to where we were a few years ago where consumers didn’t quite understand why they were paying all these fees on their bank accounts, on their savings, on their checking accounts, because of the complicated ways in which banks decided to order the different payments, and for people who are struggling to make ends meet, you cannot afford to lose $25, $30, $100 from your bank account.”

(SRW): “One last question. Consumer or medical debt is a major problem in our country, we see it, especially in Georgia. According to the CFPB data as of June 2023, about 5% of Americans had unpaid medical bills on their credit reports down from 15% in March of 2022.”

“From 15 percent now to 5 percent.”

“Ms. Gillen, it is coming up on 2 years since the credit bureaus made this announcement. What changes have you seen on applicants’ mortgage applications and has this change made it easier for Americans to rightfully qualify for a mortgage?”

Ms. Gillen (MG): “Yes, I have seen fewer medical debts being reported, but guilty as charged, if I see medical debt, I’ll have the borrower dispute the charge, and I’ll pull a new credit report.”

(SRW): “Well, good for you, and the CFPB magnifies that many, many times over.”

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