VIDEO: The CFPB as Big Brother in Conservative Campaign

The Consumer Financial Protection Bureau resembles a Soviet-style bureaucracy in a hyperbolic anti-CFPB advertising and social media campaign launched last night by a conservative group, the American Action Network.

A TV ad debuted during the Republican candidates’ debate. “They call it CFPB – designed to interfere with your personal financial decisions,” the ad begins. In the background, bureaucrats rhythmically stamp loan applications “Denied” in unison, with a sound like marching feet. Hanging on red banners are the likenesses of CFPB Director Richard Cordray and Sen. Elizabeth Warren (D-Mass.), who was the bureau’s first interim director before she ran for office.

“That car loan you needed; your mortgage; that personal loan. With the Consumer Financial Protection Bureau, those who need help the most – are denied. Washington, D.C. controlling your decisions; limiting your opportunity. Tell Congress to stop the CFPB now. Before they deny you,” the ad says, directing consumers to a toll-free number or a web site, stopcfpb.com.

The CFPB’s critics say that raising the cost of compliance and over-zealous government enforcement could raise the cost of loans and potentially even drive some lenders out of making loans to consumers with the worst credit.

In auto lending, the CFPB has concentrated on trying to get lenders to limit dealer discretion to mark up interest rates. The CFPB says dealer discretion can lead to higher rates for minority borrowers.

Emily Davis, a spokeswoman for the American Action Network, said the initial goal of the campaign is to raise consumer awareness of the CFPB, as opposed to calling close attention to particular issues.

“The goal of this ad campaign right now is to raise national awareness of CFPB and engage voters,”  she said. “So the ad lends a general reference to auto loans as well as other kinds of loans that have been impacted by CFPB activity.”