Multi-industry Letter Supporting a Substitute Amendment Expected to be Offered by Sens. McConnell and Shelby to S. 3217, the "Restoring Financial Stability Act"
TO THE MEMBERS OF THE UNITED STATES SENATE:
The undersigned associations strongly support a substitute amendment expected to be offered by Sens. McConnell and Shelby to S. 3217, the "Restoring Financial Stability Act," which would address several significant flaws with the legislation related to the Consumer Financial Protection Bureau (CPFB).
The amendment would ensure that additional regulatory scrutiny is appropriately focused on financial services companies that are in the business of offering consumer financial products and companies that by their own prior violations of consumer protection laws have demonstrated the appropriateness of imposing additional oversight.
Such a refinement to the legislation is crucial. Our associations have repeatedly raised significant concerns with the CFPB provisions included in the base bill because they would sweep a broad swath of our member companies into new regulations, new examination and supervisory requirements, and a duplicative federal regulator that would do very little to improve accountability of the financial services sector. Specifically, we are concerned the broad definitions of "consumer financial product or service" and "service provider" will cover many nonfinancial businesses that are not in the business of offering consumer financial products. For example, Section 1027 of Title X would subject many of our members to new regulation simply because they provide payment flexibility to their customers in the form of 4 or more installments.
Any new regulatory authority intended for financial services companies should not impose significant and costly new burdens on thousands of nonfinancial businesses that are already, and will continue to be, regulated by the Federal Trade Commission.
The undersigned organizations urge the Senate to adopt the McConnell-Shelby substitute amendment, which would clarify the CFPB provisions of S. 3217. We look forward to continuing to work with Congress and renew our call for meaningful, bipartisan financial regulatory reform legislation.
American Escrow Association
Electronic Transactions Association
International Franchise Association
National Association of Wholesaler-Distributors
National Federation of Independent Business
National Retail Federation
National Roofing Contractors Association
Society of American Florists
The National Business Coalition on E-Commerce and Privacy
The National Ready Mixed Concrete Association
U.S. Chamber of Commerce