OSCPA joins opponents of proposed Consumer Financial Protection Agency

The U.S. Chamber of Commerce reinforced its opposition to H.R. 3126, which proposes creating a new agency, the Consumer Financial Protection Agency (CFPA). The new agency is designed to protect consumers from abusive lending and other deceptive financial practices. However, the AICPA, OSCPA, the U.S. Chamber and many others have expressed serious concerns about the vaguely drafted legislation.

“The Chamber strongly agrees with the President that consumers need more effective protections,” David Hirschmann, U.S. Chamber president and CEO, said in a statement. “However, 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.  We disagree that adding a new agency atop a broken regulatory system solves the problem or closes regulatory gaps.”

In response to concerns expressed and a strong effort from the AICPA, House Financial Services Chairman Barney Frank, D-Mass. proposed a number of changes to H.R. 3126, including:

• An exemption from CFPA regulation for CPAs and other businesses that perform tax preparation services (It’s important to note that tax, financial planning and financial literacy services provided by CPAs are still in the revised bill.)
• Excluding merchants, retailers and other nonfinancial businesses from the regulation and oversight of CFPA
• Excluding doctors and other businesses that bill their customers after a service is provided
• Credit and other financial activities of nonfinancial business will continue to be subject to the Truth in Lending Act and other consumer statutes as they are today; the Federal Trade Commission will continue to provide oversight for these activities

While it’s important to note that all of the suggested changes ultimately are subject to the will of the entire Congress and President Obama, Frank’s support is significant. For more information, contact OSCPA’s governmental affairs department.

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