Against the CFPA
November 20, 2009 | federal legislation, industry | Comments (1)The Washington Times has a strongly worded editorial today:
As if hyperactive Washington politicians haven’t already grabbed enough power by taking over banks and car companies and trying to control everybody’s health care, now they are getting closer to centralized bureaucratic control of the entire consumer credit market. Pending legislation to create a superpowerful Consumer Financial Protection Agency (CFPA) would take an ax to financial freedom and significantly increase consumer costs.
That’s not what most people would call “protection.”
The bill already has made it through the House Financial Services Committee, chaired by Rep. Barney Frank, Massachusetts Democrat. It is expected to reach the House floor shortly after Thanksgiving. However, because so much attention has been focused on health care, this threat to consumer freedom has evaded the greater public scrutiny it deserves.
Rep. Jeb Hensarling, Texas Republican, has led opposition to the bill. In a July 22 Op-Ed column in this newspaper, he wrote: “H.R. 3126 would create a new bureaucracy run by five unelected individuals appointed by the president. … This agency would possess sweeping powers to ban or modify any home mortgage, credit card, personal loan or other ‘consumer financial product’ it subjectively deems to be ‘unfair’ or ‘abusive.’ If the mortgage that would allow you to be a homeowner is deemed ‘unfair,’ you’d better find another one. If the credit card you choose for your family is ‘abusive,’ you might find yourself paying cash.”
Comments»
The en vogue word is “protection” these days. People want their spending sprees back and they think they’re making a deal w/ the Obama administration. The big question is when does “protection” become “control”.
Great example, btw, w/ the banks and car companies.