Just when we were starting to feel comfortable that Congress was making a strong effort to protect us, reports reveal that Senate is thinking of dropping the Consumer Finance Protection Agency. This agency, originally proposed by President Barack Obama, was a main component of the new financial regulations first making their appearance in June 2009.
What Is the Consumer Finance Protection Agency (CFPA)?
The Consumer Finance Protection Agency (CFPA) was supposed to be an independent agency that watched over all consumer protection. It would be responsibility for driving greater clarity in the information consumers receive for the products they are sold. It would also have set higher standards for those who were selling the products and promoted consistent regulation across the entire system.
The hope for the CFPA was that it would reduce gaps in federal supervision and enforcement so that we would see shady behaviors that have surfaced from banks, retailers and more.
Christopher Dodd May Ditch the CFPA
Senate Banking Committee Chairman Christopher Dodd is now considering scrapping the very idea he fought so hard for – not because he wants to, but because he hopes that doing so will help to pass legislation that would help revamp the financial sector.
As it stands now, Republicans are unhappy with the CFPA. Dodd, on the other hand, wants to keep it – or some form of it – and says he will only consider scrapping this agency if the Republicans will create their own beefed-up consumer-protection division.
While banks are opposed to the idea of any type of consumer protection agency, consumer groups have lobbied hard for this type of agency and hope that Congress will find a way to create an agency that has the sole purpose of protecting consumers.
Do you feel comfortable with the idea of not having a agency to protect consumers?