The Council of Economic Advisers (CEA) estimates that the Consumer Financial Protection Bureau (CFPB) has imposed significant costs on consumers since 2011, totaling between $237 billion and $369 billion. These costs include increased compliance and liability burdens, higher borrowing expenses, and reduced loan originations across mortgages, auto loans, and credit cards.
Key findings:
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Increased Borrowing Costs: The CFPB has raised borrowing costs by at least $222 billion to $350 billion from 2011 through 2024, with specific impacts:
- Mortgages: $116 billion to $183 billion (or $1,100 to $1,700 per loan)
- Auto loans: $32 billion to $51 billion (or $91 to $143 per loan)
- Credit cards: $74 billion to $116 billion (or $80 to $126 per loan)
These costs far exceed the $21 billion returned to consumers by the CFPB.
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Economic Efficiency Losses: Higher borrowing costs have reduced loan originations, leading to an economic efficiency loss of between $1.5 billion and $5.7 billion.
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Paperwork Burden: The annual paperwork burden from CFPB rules exceeds 29 million hours, costing businesses nearly $2.5 billion in 2024 alone. From 2011 to 2024, this burden has cost businesses $21 billion.
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Fiscal Costs: The CFPB has received $8.9 billion in transfers from the Federal Reserve since 2011, resulting in a marginal excess tax burden (METB) of $4.4 billion. The total fiscal cost of the CFPB since inception is over $13.3 billion.
The CEA attributes these costs to the CFPB's regulatory and enforcement actions, which have disproportionately burdened consumer financial markets. The Bureau's lack of transparency and its reliance on informal rulemaking have exacerbated these costs, leading to higher prices, reduced product offerings, and economic inefficiencies.
