Consumer Law

Unexpected Views on the CFPA

By Jeff Sovern

by Jeff Sovern

A couple of reports on the Consumer Financial Protection Agency proposal that go against type:

First. 19 current and former members of the Fed's Consumer Advisory Council, including our own Alan White, have joined in a letter supporting an independent CFPA and opposing housing it in any other federal agency, including the Fed. The letter states "No agency, including the Federal Reserve, has a strong record in this regard. * * * The Federal Reserve has its hands full with responsibilities relating to safety and soundness and monetary policy."

Second, Baseline Scenario is reporting on a finding of the March 2010 survey of members of the National Association for Business Economics:

A key point of discussion in Congressional deliberations on financial services regulatory reform has been the establishment of an independent agency focused on consumer financial protection. Fifty-four percent of survey respondents feel that creating such an agency would not impair safety and soundness regulation; 25 percent believed it would be detrimental.  On a related issue, 43 percent of respondents indicate that a consumer financial protection agency would not impair access to credit while 39 percent believed it would.

If business economists--who are not known for supporting consumer protection initiatives--are not persuaded by the arguments against the CFPA, why should anyone be?

Full post as published by CL&P Blog on March 14, 2010 (boomark / email).