Chamber of Commerce Takes Another Swing at CFPA

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


As MoJos Andy Kroll noted yesterday, lawmakers and Obama administration officials have agreed to cut the “plain vanilla” provision from legislation establishing the Consumer Financial Protection Agency (CFPA), an office that would safeguard consumers by regulating financial products.

But apparently this dilution isn’t enough for those set against regulatory reform—in particular the Chamber of Commerce, which earlier this month launched a $2 million ad campaign claiming, among other things, a local butcher couldn’t extend credit to his customers without government interference if the CFPA is created. However, according to CNN, a memo on the CFPA by House Financial Services Committee chair Rep. Barney Frank (D-Mass) “makes it clear that lawmakers don’t want to regulate merchants and retailers who give their customers credit or layaway plans.”

Yesterday morning, a small group of the bill’s opponents gathered at the Chamber of Commerce’s headquarters in Washington DC to try another line of attack. The keynote speaker, Sen. Walter Minnick (D-Idaho) who sits on the committee that will determine the bill’s fate, expressed his dissatisfaction with the creation of an additional regulatory agency. (He also thanked the Chamber for its good behavior at a Senate hearing on the proposal on Thursday: “I was just delighted that none of your members were throwing shoes.”)

Thomas A. Durkin, former Senior Economist in the Division of Research and Statistics at the Federal Reserve Board, produced a 26-page document outlining small businesses’ reliance on consumer credit.  He said that start-up companies with no history of revenue appear risky, so banks won’t give them proper loans and they are forced to fund ventures with consumer credit cards. Durkin warned that the CFPA could deter a future Microsoft, which began its life as a small start-up.

These claims bear little resemblance to the role of the CFPA as outlined by its backers in Congress. Its mission would be to simplify the terms and conditions of credit available to consumers, and to protect them from exploitation. Isn’t it fair to assume that small businesses would only benefit from protection against unscrupulous lending and credit practices?

 

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate