STATE ATTORNEYS GENERAL
A Communication From the Chief Legal Officers
Of the Following States and Territories:
Arizona * California * Connecticut * Guam * Hawaii * Illinois * Iowa
Louisiana * Maine * Massachusetts * Minnesota * Mississippi * Missouri
Montana * Nevada * New Jersey * New Mexico * North Carolina * Ohio
Oklahoma * Oregon * Tennessee * Vermont * West Virginia
August 17, 2009
Via Facsimile
The Honorable Christopher J. Dodd
Chairman
Committee on Banking, Housing and Urban Affairs Committee on Banking, Housing, and Urban Affairs
United States Senate United States Senate
The Honorable Richard C. Shelby
Ranking Member
Committee on Banking, Housing and Urban Affairs Committee on Banking, Housing, and Urban Affairs
United States Senate United States Senate
The Honorable Barney Frank
Chairman
Financial Services Committee Financial Services Committee
United States House of Representatives United States House of
The Honorable Spencer Bachus
Ranking Member
Financial Services Committee Financial Services Committee
United States House of Representatives United States House of Representatives
Dear Senators Dodd and Shelby and Representatives Frank and Bachus:
As the chief law enforcement officers of our states, we strongly support legislation to create a Consumer Financial Protection Agency (“CFPA”). The current financial crisis, caused in part by irresponsible subprime lending and inadequate oversight, has demonstrated the need for comprehensive and effective consumer protection and enforcement at the federal level. We believe an independent federal agency combined with joint enforcement by state officials is the best option for meaningful consumer protection in this area.
We look forward to forging an alliance with a federal regulator that has the protection of consumers and the promotion of sound credit practices as its central agenda. We appreciate the fact that this legislation recognizes the key role that state Attorneys General serve in spotting new frauds and abuses, responding to consumers the tools to make informed choices as well as provide the tools to law enforcement agencies to protect consumers from unfair and deceptive practices.
The state Attorneys General stand ready to collaborate with the new agency to develop rules based on the experiences and needs of our citizens. Partnered with the state Attorneys General, the new agency promises to be an effective check on the recent excesses of the financial industry. We believe that an independent federal consumer agency, with a focus on consumer protection, will help restore citizen concerns, and enforcing state laws. The preservation of our role is critical to fighting fraud in the financial marketplace and a crucial factor in our support of this legislation.
1. Support for the creation of a Consumer Financial Protection Agency
The creation of a new agency whose sole mission is to address consumer protection is vital. There is clearly a need for effective regulation of consumer financial products that crosses existing regulatory lines. The most effective way to insure fair dealing in the marketplace is to establish clear, firm rules and to enforce those rules with clear, firm consequences. The new agency will be a needed voice for consumers at the federal level and will encourage innovation and choice…
To read the entire letter Download CFPA_sign_on_letter