House Committee passes Consumer Financial Protection Agency proposal

The U.S. House of Representatives Financial Services Committee passed H.R. 3126, a bill for the creation of the Consumer Financial Protection Agency (CFPA), Oct. 22 in a 39-29 vote. The insurance industry was excluded from the legislation.

The CFPA serves several purposes:

• CFPA is responsible for rulemaking, examination and enforcement of financial institutions that provide consumers with financial products and services.
• The rulemaking authority of the Federal Reserve and other Federal banking agencies under the existing consumer banking laws is transferred to the CFPA.
• CFPA also has broad rulemaking authority to address unfair, deceptive and abusive acts and practices that the Agency identifies in the future.
• CFPA will examine bank and nonbank institutions for compliance with the consumer banking laws and CFPA regulations and enforce violations of those standards.

The House leadership has not decided when H.R. 3126 will be brought to the House floor for a vote. To view text of this legislation, visit ASA’s legislative Web site at www.TakingTheHill.com.