Concern about CFPA negotiations

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Friday, March 5th, 2010

The negotiations happening in Senate Banking around financial reform are disappointing. The committee is entertaining ideas about moving away from a strong independent Consumer Financial Protection Agency, as we have repeatedly urged, and moving it under an existing agency. In a letter to the Committee this week, we once again explained why it is essential that the Senate create an agency that is completely independent with “authority, funding and ability to act promptly to address the abusive and unfair practices of both banks and non-banks that offer financial products and services.”

We are deeply concerned about recent press accounts that describe proposals currently under consideration that would house a consumer protection watchdog, with limited authority, in existing or proposed regulatory agencies. Moving the boxes around is not the true reform consumers need or expect; it merely maintains the status quo.

CU isn’t the only one telling the committee that they should stay strong on this issue. Representative Barney Frank is also fighting mad about the possibility of a Senate bill passing which would be significantly less effective at protecting consumers than the bill passed by the House in December.

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