CFPA Bill Passes First Major Hurdle

In an important victory for consumers, the House Financial Services Committee today approved the Consumer Financial Projection Agency Act of 2009 by a mostly party line vote, 39-29.

Here’s the press release issued by Ed Mierzwinski, Consumer Program Director at U.S. PIRG:

Despite the efforts of a massive special interest lobby to convince Congress that the 2008 financial meltdown didn’t happen and, even if it did, wasn’t their fault, on Thursday, the House Financial Services Committee approved landmark consumer protection legislation establishing an independent Consumer Financial Protection Agency.

As the bill moves forward, we expect further battles to weaken the bill, especially attacks on its critical provision re-establishing federal law as a floor not ceiling of consumer protection. We also anticipate battles to fix a few troubling provisions snuck into the bill, especially exceptions for car dealers and credit life insurance firms. But the underlying bill is sound and today’s vote is the first step toward final action this year to establish a single agency that regulates all financial products to protect consumers from predatory lending.

(Photo: RevDanCatt)