A Better Way to Protect Consumers

April 7, 2010
New York Times
David Hirschmann

To the Editor:

Re "Derailing Help for Consumers," by Bob Herbert (column, March 27):

The concerns of small business about the impact of specific provisions in the proposed Consumer Financial Protection Agency legislation are legitimate and deserve to be heard.

The U.S. Chamber of Commerce has long called for modernizing our financial regulatory system to protect consumers, help ensure abundant, affordable access to capital for individuals and businesses, and provide the basis of new economic growth that will help create millions of new jobs.

The U.S. Chamber of Commerce and the hundreds of thousands of small businesses we represent, however, are concerned that the agency would have unprecedented powers over the economy and have authority far beyond banks and other providers of financial products. The language in the current bill is vague and could impose new regulations on any business that permits customers to pay in more than four installments or on a business that applies interest charges for late payments — like your orthodontist.

Small businesses are also concerned that the agency would have unchecked authority to write its own rules without oversight by Congress, the Federal Reserve or even the president.

The U.S. Chamber of Commerce has proposed a Consumer Protection Council to coordinate regulatory and enforcement actions, eliminate gaps, provide consistent disclosure standards and identify areas in which new regulations are necessary. This would be a more efficient approach that would not hurt the economy or restrict investment.

Mr. Herbert says, "Ordinary Americans need someone on their side in the wild world of consumer credit." We agree! Americans also need someone on their side to create jobs and protect the economy. Our plan does all three.

David Hirschmann
President and Chief Executive
Center for Capital Markets Competitiveness