Woodstock Institute applauds Rep. Melissa Bean’s (D-IL) decision to withdraw her amendment to the Consumer Financial Protection Agency (CFPA) Act that would allow large national banks to override state consumer protection laws.

 

Rep. Ed Perlmutter (D-CO) proposed and withdrew the amendment in Rep. Bean’s absence. This is a large step forward in the creation of a robust consumer financial protection infrastructure that includes both strong federal minimum standards and state laws tailored to local needs.

House Financial Services Committee Chairman Barney Frank (D-MA) expressed his commitment to further discuss the issue of preemption with Rep. Bean. Additionally, Rep. Bean has indicated that she plans to re-introduce the amendment when the bill goes to a general House vote. We ask that Rep. Bean reconsider. The CFPA should be a strong floor, not a restrictive ceiling.

We also extend our thanks to Illinois advocates who raised their voices on behalf of consumers and told Rep. Bean that we need more cops on the beat to ensure that consumers are adequately protected. Notable in this group are Illinois Attorney General Lisa Madigan and Illinois Department of Financial and Professional Regulation Acting Secretary Brent Adams, who have been tireless advocates for consumers and effective first responders on predatory lending issues.