House Financial Services Committee Approves Bill to Create the Consumer Financial Protection Agency
The House Financial Services Committee last week approved a bill to create the Consumer Financial Protection Agency (CFPA). This approval clears the way for a House vote.
The proposed new agency is to be tasked with the prevention of abusive or predatory tactics by financial institutions and increases the scope of institutions regulated at the federal level. For example, state regulated mortgage lenders and payday lenders would be subject to federal regulation by CFPA.
Additionally, CFPA would consolidate consumer protection authority from the Federal Reserve and other banking regulators. The CFPA's duties would also include finding and monitoring the industry for harmful financial products, and would have the power and obligation to promulgate regulations and to ban potentially harmful products.
For access to House Bill 3126 click here