Ledger DC Journal - News, Politics & Crime

The White House and President Barack Obama are firmly behind a proposal that would create a new Consumer Financial Protection Agency (CFPA). President Obama on Friday was adamant about his wish for this change for consumers. He is certain it will help people see more clearly what they are being charged and just how much.

Consumer Financial Protection Agency: President Obama Pushes CFPA (Image: WENN)

The proposed legislation would give the new stand-alone government agency the authority to set rules regarding credit cards and other financial services products.

The president said, “In a financial system that’s never been more complicated, it has never been more important to have a watchdog function like the one we’ve proposed. In the past, a lack of clear rules led to innovation of the wrong kind: The firms that did best were the ones who did the best job of hiding the real cost to consumers. We don’t want them competing by figuring out how much they can fool ordinary Americans.”


There is opposition. Consumer Affairs notes that the banking industry is opposed, as is the Federal Reserve, "which currently has that authority," the report notes.

Obama used his Saturday address to try and get his message out and slam those opposed. “They're doing what they always do -- descending on Congress and using every bit of influence they have to maintain a status quo that has maximized their profits at the expense of American consumers," Obama said in his remarks. "That's why we need a Consumer Financial Protection Agency that will stand up not for big banks and financial firms, but for hardworking Americans."


The US Chamber of Commerce has an opinion and had this as part of a statement, "We disagree that a massive new federal agency with unprecedented powers over vast segments of the business community will be good for consumers, for America's job creators or for the economy," David Hirschmann, president of the Chamber's Center for Capital Markets Competitiveness, said in the statement. "We disagree that adding a new agency atop a broken regulatory system solves the problem or closes regulatory gaps. And, we don't agree that consumers are well served by allowing the states to each create different disclosures, and regulations on top of those created by the proposed new regulator."