Attorneys General from 24 states are urging Congress to create the consumer protection agency proposed by the Obama Administration. President Barack Obama proposed the Consumer Financial Protection Agency on July 17th as part of sweeping financial regulation reform. Specifically, the agency would oversee most consumer-oriented financial products, such as credit cards and mortgages, and require lenders to give customers the option of “plain vanilla” plans with straightforward terms. Iowa Attorney General Tom Miller, who has been one of the leaders in the movement, said in a statement:
Working with the states, this agency will be able to prevent and root out unfair and deceptive practices by the financial services industry.
The letter, which was sent to leaders of the Senate Banking Committee and the House Financial Services Committee, read:
The current financial crisis, caused in part by irresponsible subprime lending and inadequate oversight, has demonstrated the need for comprehensive and effective consumer protection and enforcement at the federal level.
President Obama asked lawmakers to adopt a new regulatory regime by year’s end. The letter from the Attorneys General also called for the preservation of the states’ authority and ability to fight unfair and deceptive practices. The CFPA will not preempt state law. Instead, it will allow states to continue to experiment with different approaches. Hopefully, Congress will pass the needed legislation to create the CFPA.
Source: Des Moines Register
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