U.S. Chamber and 2,100 Businesses, Chambers and Individuals Urge Better Path Forward on Financial Regulatory Reform

Letter to Full Congress Shows Breadth of Opposition to CFPA

WASHINGTON, D.C.—The U.S. Chamber of Commerce and more than 2,100 chambers of commerce, associations, businesses and individuals from around the country sent a letter to all members of Congress last night underscoring their opposition to H.R. 3126, the Consumer Financial Protection Agency Act (CFPA).

In the letter, the groups express strong concern over the proposed CFPA legislation for not adequately addressing the failures within existing regulatory agencies. Instead, it would create a new and massive government bureaucracy that would reduce consumer choice, stifle innovation, and restrict access to credit just as we are beginning to see signs of an economic recovery.

"The CFPA would have sweeping and broad authority to regulate businesses across the spectrum of industry, even if they are not in the business of consumer finance," according to the letter. "Broad definitions and vague regulatory standards would give the CFPA unending jurisdiction and unchecked power, exposing businesses both to its regulatory authority and the litigation exposure that comes with it. The uncertainty in regulatory standards and increased liability create significant disincentives for institutions to lend to consumers, which restricts access to credit and increases the price of credit products for consumers."

The letter continues by stating that the bill would not establish a new national standard to simplify and bring uniformity to consumer protection laws, but would do exactly the opposite. It would create conflicts among state and federal law, and add to the complexity and confusion for consumers and businesses.

The letter also points out that the agency takes a one-size-fits-all approach to consumer protection and ignores the fact that small businesses often use consumer financial products to supplement business lines of credit meet short-term capital needs. Pushing standardized products intended to for average consumers would deny small business owners a choice of products they depend on to grow and create jobs.

According to the signatories: "Instead, Congress should improve regulation from the ground-up by ensuring existing regulators have the tools they need to protect consumers. We need reform that will weed out the bad actors that push predatory consumer products or fraudulently mislead consumers about the products they sell. We need to simplify disclosures to provide consumers with the information they need in a clear and concise manner that will allow an informed and responsible financial decision."

The letter comes on the heels of the Chamber's announcement that it had surpassed more than 100,000 grassroots letters to Congress in opposition to the proposed CFPA.

Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems. Fundamental to this effort, the Chamber believes we must eliminate duplicative and overlapping layers of regulation and enforcement that undermine efficiency.

The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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