The article, CFPB Expands Into College Education Accreditation, originally appeared at Heartland Fiscal Times on December 6th.
Federal banking regulators are expanding the power of the Consumer Financial Protection Bureau (CFPB), demanding records and testimony from higher-education accreditation agencies as part of an investigation into possible “unlawful acts and practices in connection with accrediting for-profit colleges.”
CFPB was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to advocate for consumers.
Diane Katz, a senior research fellow in regulatory policy with The Heritage Foundation, says CFPB’s quest to expand its regulatory reach is nearly unstoppable.
“CFPB is, you know, perhaps one the most powerful agencies that has ever been created,” Katz said. “The problem is that there is no accountability or oversight by Congress. Their funding comes straight from the Federal Reserve, and it’s set in statute that they get a fixed percentage. There is no power of the purse. There’s no way that Congress can directly limit how they use funds. That’s one problem.”
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