H.R. 3126 would establish the Consumer Financial Protection Agency.
Detailed Summary
Consumer Financial Protection Agency Act of 2009 - Establishes the Consumer Financial Protection Agency as an independent executive agency to regulate the provision of consumer financial products or services (products or services) under: (1) this Act; (2) consumer finance laws including the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, provisions of the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Truth in Savings Act; and (3) transferred authorities concerning consumer financial protection functions of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation (FDIC), the Federal Trade Commission (FTC), and the National Credit Union Administration (NCUA).
Requires the Agency to establish a Consumer Advisory Board to advise and consult with the Agency in the exercise of its functions and to provide information on emerging practices in the products or services industry.
Requires collection of annual fees or assessments to recover amounts expended by the Agency.
Establishes in the Treasury the Consumer Financial Protection Agency Civil Penalty Fund for deposit of any civil penalty obtained against a person in a judicial or administrative action under this Act.
Requires the Agency to seek to promote transparency, simplicity, fairness, accountability, and access in the market for consumer financial products or services. Authorizes the Agency to take administrative actions to: (1) prevent a person from committing or engaging in an unfair, deceptive, or abusive act or practice under federal law in connection with any transaction with a consumer for a product or service; (2) ensure the appropriate and effective disclosure or communication to consumers of associated costs, benefits, and risks; (3) guide the manner, settings, and circumstances for the provision of products or services to ensure that their risks, costs, and benefits are fully and accurately represented to consumers; and (4) approve pilot disclosures to consumers.
Encourages states to prescribe standards applicable to persons (other than insured depository institutions or credit unions) to deter and detect unfair, deceptive, abusive, fraudulent, or illegal transactions in the provision of products or services. Authorizes the Agency to prescribe regulations establishing minimum standards.
Defines "standard consumer financial product or services" and allows the Agency to prescribe regulations or guidance concerning the offering of them at or before the time an alternative consumer financial product or service is offered.
Sets forth prohibitions regarding marketing and advertising, agreement terms and fees, refusals to permit access to records, and providing assistance in unfair, deceptive, or abusive acts or practices.
Describes the enforcement authorities of states under this Act.
Describes the investigative and adjudicatory authorities and procedures of the Agency, including procedures for referral for the institution of criminal proceedings.
Provides identification and availability requirements for the maintenance of records of the number and dollar amounts of deposit accounts for each branch, automated teller machine at which deposits are accepted, and other deposit-taking service facility with respect to any financial institution.
Amends the Equal Credit Opportunity Act to require each financial institution, in the case of an application for credit for a small business, to: (1) inquire whether the business is a women- or minority-owned business; and (2) maintain a separate record of the responses to such inquiry. Restricts access to such information by loan underwriters or other employees of the financial institution. Requires such information to be compiled and maintained by each financial institution and submitted annually to the Agency, which shall make it available for public disclosure.
Amends the Federal Trade Commission Act to require the FTC, in any investigation or proceeding in which it appears that an unfair or deceptive act or practice is being committed in connection with the marketing, sale, provision, or delivery of a product or service, to consult and coordinate with the Agency as the agencies deem appropriate. Makes it unlawful for any person, knowingly or recklessly, to provide substantial assistance to another in violating any provision of the Act or any other Act enforceable by the FTC that relates to unfair or deceptive acts or practices.
Precludes FTC rulemaking authority with regard to the marketing, sale, provision, or delivery to an individual of a consumer financial product or service that is subject to the jurisdiction of the Agency. Revises other FTC rulemaking procedures regarding: (1) rule publication; (2) meetings with outside parties; (3) communications of investigative personnel outside the rulemaking record; and (4) judicial review.
Status of the Legislation
Latest Major Action: 10/29/2009: House committee/subcommittee actions. Status: Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 19.
Points in Favor
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Points Against
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Visitor Comments
rlittle
(logged in user) July 9, 2009, 6:15pm (report abuse)Under this law, every bank would be required to offer federally approved and required “standard financial products and services.” This means that every bank would offer precisely the same group of deposits and loans. Deviations from this would be watched so closely, and subject to such severe penalties that only the federally approved financial services and products will, as a practical matter, be offered. This is a breathtaking grab of control of ordinary community banks in small towns across America.
There’s more.
Jordan Fogal
July 10, 2009, 1:30pm (report abuse)Bigger is not better in the case of banking institutions. Does no one remember Standard oil? The last three privately owned banks we loved and used were bought out by Wells Fargo. WF is horrible at customer service and changed many things to consumers detriment after the hearings. Morgan Stanley has 900 dollars of my mother in laws, they have heldsince her death over 3 years ago. They say they never recieved the docments, when we had certified mail reciepts. For a year they promised we would recieve the money in two weeks. Checks in the mail... We wanted to pay for her head stone. These instituions do not care and we are at their mercy. Also, these instituions hide behind forced arbitration clauses, if there is a dispute. Consumers have no confidence because they have been assaulted from all sides.
lalexander
August 5, 2009, 12:47pm (report abuse)This legislation is crazy. Banks are already heavily regulated. Community banks and credit unions did not cause the financial crisis but they will pay for it. This bill would require new FTC enforcement against banks. Americans should oppose this measure because the federal government should not be in the business of dictating the details of what any business does. The federal government would be able to “define” the “terms, conditions and features” of the various products and services of banks across America. This could include how long a mortgage or deposit could be (30 years, 15 years, or whatever the government says) the rate charged on these products, etc.
MORE BIG GOVERNMENT--JUST SAY NO!
lalexander
August 5, 2009, 12:50pm (report abuse)Thank you for considering my views.
E. Buchanan
August 9, 2009, 10:45pm (report abuse)Very much against this bill. Government does not need to be involved in the banking or lending business.
Richard Conner
August 20, 2009, 1:52pm (report abuse)As Robert Reich so aptly states in his book, "Supercapitalism", Corporations/business do not have to be moral and ethical. They are in the business to make a profit, and as much as they want to get what they want. Someone has to protect the consumer from abuse. That is why we must have a Consumer Protection Agency.
sadie
August 25, 2009, 10:22pm (report abuse)Hey Richard Conner - I am all about having consumer protection, but you need to read this bill. It says that the govt can dictate what products banks offer to consumers (YOU) and how they are mareketed. Banks would be required to offer products that the govt deems more appropriate for you than the banks do...although banks primary business is to offer what would fit their customers. Do you really want the govt to decide what checking account is best for you? READ THE BILL!!!! Of course banks are for-profit companies (capitalism), but that doesn't mean that the govt is more qualified to tell you what best fits your needs. You can choose whatever bank product you want now. This bill wants to force you to look at govt options and reject them before the banks even get to offer you anything that they have deemed a possible fit due to years of research and millions of dollars to figure out. Think about it....pretty simple!
John Lucas
October 22, 2009, 3:14pm (report abuse)A great piece of legislation that was need years ago.
maryanne
October 25, 2009, 3:57pm (report abuse)yes, and I'm finding out that Maxine Waters added a provision to have ACORN as a member of the board. They are running amok in Washington and the country be damed. It passed 33-35.
MIKE KIRBY
October 29, 2009, 8:15pm (report abuse)THE JOB OF THE UNITED STATES GOVERNMENT IS NOT TO RUN BANKS, FINANCE COMPANIES, SELL CARS, SELL INSURANCE ,OR FOR THAT MATTER SELL ANYTHING. OUR GOVERNMENT CAN'T EVEN RUN THEMSELVES. INSTEAD OF WORRYING ABOUT THIS, YOU NEED TO STOP KILLING UNBORN BABIES! FIND A WAY TO STOP THE DRUG PROBLEM. FIND A WAY TO LOWER CRIME.FIND JOBS NOT TAKE AWAY JOBS! NO MATTER IF YOU ARE A DEMOCRAT OR A REPUBLICAN PRESIDENT YOUR JOB IS TO BE FAIR TO ALL AMERICANS. THIS BILL IS PLAIN OUT RIDICULOUS!
Ryan Hammond
October 30, 2009, 10:35am (report abuse)H.R. 3126 would create a new regulator appointed by President Obama. It would have the power to strip from consumers their freedom of choice and restrict their credit opportunities in the midst of a financial recession -- all in the name of "consumer protection." For example, agency bureaucrats could tell our customers how many loans they may take and how they will borrow money. They will also have the authority to assess fees on lenders to pay for the cost of the new agency, thus increasing the cost to the consumer. Rules that regulate an already working industry to “streamline” the regulatory system are unnecessary. Finally, this agency will give the government control over compensation standards for employees of financial services institutions and could eliminate arbitration clauses.
WHAT IF YOU NEED A LOAN
October 30, 2009, 10:58am (report abuse)The installment loan industry serves people who are trying to meet both day-to-day and unexpected expenses. Most customers are employed, but like many Americans, have little savings. Many have damaged credit histories, which further inhibits access to credit even in the best economy. Because commercial banks rarely offer small dollar (under $2,000) loans to their existing depositors—much less to non-depositors—the options for the installment loan customer are few.
WHAT IF YOU NEED A LOAN
October 30, 2009, 11:00am (report abuse)Establishing a Consumer Financial Protection Agency (CFPA) will give bureaucrats in Washington power far beyond regulating mortgages and real estate. The CFPA may regulate consumers’ credit cards, debit cards, consumer loans, installment loans, payday loans, credit reporting agencies, debt collection, stored-value cards and even investment advisory and financial advisory services, to name only a few.
WHAT IF YOU NEED A LOAN
October 30, 2009, 11:02am (report abuse)Handing over consumer protection and enforcement powers to a new agency that does not understand the business side of banking will be burdensome for lenders and add extra layers of bureaucracy and nightmarish legal liabilities.The creation of a new federal agency, in addition to the state agencies they currently comply with, will restrict what installment lenders can charge for their services and could well force them out of business altogether.
John Adams
November 3, 2009, 5:06am (report abuse)I find so much going on in Washington, today, confusing. It is unimaginable to me to see my countrymen willingly, like lemmings, give up their freedoms. Some small regulations are quite different from what HR3126 would allow. It, also, appears that this bill is, yet, another step in the process of passing that most foul bill: "Cap and Trade". If this character, Frank, is for something, hold on to your wallet!
Carlene Foster
November 4, 2009, 2:36pm (report abuse)I think this is another Obama mad goverment intrusion into our rights & you better write your congressman NOW! IF they do not listen, it is another reason to vote them ALL OUT at the next election! I am sick of all this aren't YOU??
JUNE S MORROW
November 9, 2009, 10:29am (report abuse)This new "Law" is unneccessary...there are more important things to be regulated than this.....We "the people" should make this type of decesion as far as who and how we want to do business...The government is already struggling...this new law could put several more people out of a job!!!! It does not make sense AT ALL....