« Zero Mercury Working Group: World Governments Move Towards Global Treaty on Mercury | Main | NADA Testifies in Support of a Single, National Fuel Economy Standard »
Consumer Financial Protection Agency Needs Strengthening to Keep Consumers and the Economy Safe
October 23, 2009A new consumer financial protection regulator was wounded but not crippled by a barrage of special interest lobbying and amendments before final approval of the bill in the House Financial Services committee yesterday, said the nonpartisan Consumer Watchdog. "Americans want an end to the culture of greed and consumer abuses that led to the financial crisis. This bill is an essential step toward reform, but it was weakened by the financial firms who want to avoid strong oversight," said Carmen Balber with Consumer Watchdog. "We look to Congress to strengthen the bill as it moves forward so consumers are truly protected against abuses and outrageous treatment by lenders and financial institutions." One major target of the financial industry was states' authority to enact stronger laws when federal rules do not provide consumers with enough protection. Commercial banks, finance and credit card companies spent $42 million lobbying to make their case from January through June, according to data released by Common Cause this week. They won a partial victory: the bill as amended gives the Office of the Comptroller of the Currency (OCC) the ability to preempt some state laws. The OCC is the regulatory agency most responsible for overriding important state protections over the last decade, said Consumer Watchdog. Full release.