Consumer Financial Protection Agency
Bill establishing new Consumer Protection Agency passes
committee
Colleagues,
The House Financial Services Committee this week passed
legislation to establish the Consumer Financial Protection
Agency, HR 3126. The bill is intended to consolidate regulation
of banks and other financial services in one agency. Under
current law, the Federal Trade Commission has jurisdiction over
financial products and services not regulated by other agencies.
The proposed bill would transfer regulation of these entities to
the new agency. Unfortunately, the Fair Credit Reporting Act
jurisdiction would be transferred to the new agency under the
bill passed by the Committee on Thursday. NCISS has opposed this
transfer because we believe the FTC has an understanding of the
investigative profession. As I reported Wednesday, Chairman
Barney Frank had proposed earlier to leave the regulation of
consumer reporting agencies with the FTC. During consideration
of the bill in Committee, however, he said he changed his mind
with respect to credit reports because they are a financial
service. When questioned, he said he did not realize that moving
this jurisdiction to the new agency would affect background
checks and other non-financial activities. He agreed to try to
limit the activities that would transfer to the new agency.
NCISS will work with members of the House Financial Services
committee to keep regulation of consumer reporting agencies in
the FTC. This bill is expected to go to the House floor within
the next several weeks. There has been little activity to date
in the Senate, where there is more opposition to the creation of
this new agency.
Keeping investigators informed,
Jimmie Mesis
NCISS Legislative Chairman
jim@nciss.org
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