Washington, DC - Today, Congressman John D. Dingell (D-MI15) made the following remarks at the Subcommittee on Commerce, Trade and Consumer Protection hearing on “The Proposed Consumer Financial Protection Agency: Implications for Consumers and the FTC.”
“Thank you, Mr. Chairman, for holding today’s very important hearing. The financial crisis of late demands swift action, particularly on behalf of aggrieved consumers, and we will concern ourselves this morning with the Administration’s suggested means by which to ensure improved consumer protection with regard to financial products and services. This proposal, however, should give members of this Committee sufficient reason for pause, as it entails a transfer of existing authority from the Federal Trade Commission (FTC) to a newly-minted Consumer Financial Protection Agency (CFPA). I have significant concerns about such plans and intend to engage today’s witnesses in a frank discussion about their merit.
“The Administration envisions consolidating all consumer protection functions related to financial products, including rulemaking, supervision and examination, and enforcement under the aegis of the CFPA, which would also receive sole rulemaking and enforcement authority over consumer financial protection statutes, such as the Truth in Lending Act. At first glance, this strikes me as a de jure, and possibly unwarranted, reassignment of FTC’s consumer protection authorities in the financial services arena. While a comparatively small agency, I feel FTC has done fine work protecting consumers and would benefit not from a diminished mandate relating to financial services, but rather from additional statutory authority and funding. Consequently, I maintain a modest degree of initial skepticism at the Administration’s proposal, which is pending our consideration.
“In brief, I wish for our witnesses to elucidate upon several matters associated with the CFPA proposal. First, if CFPA were mandated under law, what authorities would be left to FTC? Second, what latitude would FTC have in enforcing consumer protection statutes as they relate to financial services? Third, how would one characterize the level of interagency cooperation in the drafting of the Administration’s proposal? Finally, if CFPA receives its proposed mandate, what will become of this Committee’s jurisdiction over consumer protection, as designated under Rule X of the House of Representatives? I welcome our witnesses’ responses to these and other questions in order to establish a proper and adequate record for additional action by the Congress, if deemed so necessary, on this matter.
“Again, thank you Mr. Chairman for your courtesy and foresight in holding today’s hearing. I would conclude on a personal note by welcoming Dr. Stephen Calkins, Associate Vice President for Academic Personnel and Professor of Law at
