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The CFPA would police and write rules for financial firms' retail products, such as mortgages, bank accounts and credit cards, and there is much about the agency that bank lobbyists find hard to swallow.Financial firms have spent some $220m on Capitol Hill this year, according to the New York Times, much of it agitating against the CFPA.
The CFPA would clarify who is responsible.
The CFPA, however, would have sole authority to promote and interpret these regulations.
The CFPA is by no means a certainty, but it's the first part of reform Democrats on the House Financial Services Committee plan to work on this fall.
The CFPA legislation would gut federal pre-emption by ensuring that state attorneys general and other state regulators can enforce state consumer laws against national banks.
The CFPA would set and enforce rules about loans, savings, payment and other consumer financial products (except for those already overseen by the SEC and CFTC).
The CFPA, as proposed by the Obama administration, would be the primary watchdog for servicer abuses.
The CFPA would be answerable to consumers -- not to banks and not to Wall Street.
The CFPA will play a critical role in rebuilding a secure Middle Class, but no regulator is perfect.
"The CFPA should be able to set basic safety regulations -- a floor -- and states should be able to go beyond that floor if they choose.
The CFPA issues strong rules cracking down on credit card abuses one week and the Fed issues contrary rules the next?
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