CBA President Says Proposed Consumer Protection Act is a ?Bridge Too Far?

Arlington, VA —  Twenty-four hours after the White House released draft legislation to create a new federal agency focus on issuing rules and regulations for consumer-oriented products, the Consumer Bankers Association held a conference call with its membership to discuss the impact of the proposed legislation on the retail banking industry. Following the call, Richard Hunt, CBA’s president, made the following statement about the proposed bill:

"The CBA reiterates the desire to bring about much needed reform in the banking industry. The pact that banks have with consumers— their clients— to provide transparent, easy-to-understand loans for home ownership, a child’s education and other important life events is of utmost priority.

"We have thoroughly examined the Administration’s proposal to create a new federal agency to regulate the relationship between retail banks and their customers, and the mandates imposed by the government.

"It is a bridge too far.

"This proposal will unfortunately have the unintended consequences of reducing credit and raising banking costs for Americans by creating needless uncertainty in our country’s consumer financial services industry. This plan imposes extraordinary restrictions on the ability of retail bankers to meet their clients’ needs, and to do so in a timely, cost effective manner.

"We will continue to work with the Administration and members of Congress to reach a favorable conclusion for the American consumer."

For ninety years the Consumer Bankers Association has been the recognized voice on retail banking issues in the nation’s capital.  Member institutions are the leaders in consumer financial services, including auto finance, home equity lending, card products, education loans, small business services, community development, investments, deposits and delivery.

CBA was founded in 1919 and provides leadership, education, research and federal representation on retail banking issues such as privacy, fair lending, and consumer protection legislation/regulation.  CBA members include most of the nation’s largest bank holding companies as well as regional and super community banks that collectively hold two-thirds of the industry’s total assets.