Illinois Attorney General Lisa Madigan and 23 other attorneys general sent a joint letter in support of H.R. 3126, which would create a new federal Consumer Financial Protection Agency, to Congressional leaders on the House and Senate banking committees on August 18.

 

We applaud their action to protect consumers from predatory, abusive, and unfair financial practices. Other public servants should follow suit in voicing support for this legislation, which would improve the lives of their constituents and strengthen communities by helping to break the cycle of debt.

“We appreciate the fact that this legislation recognizes the key role that state Attorneys General serve in spotting new frauds and abuses, responding to 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,” the letter said.

 

The letter also cited the explosion of “mortgage rescue scams” to underscore the states’ lead role in combating fraud. In Illinois, Attorney General Madigan has filed 24 lawsuits against mortgage rescue scams and drafted and helped to pass the Illinois Mortgage Rescue Fraud Act, which prohibits the practice of charging consumers upfront payments for loan modification services.

 

Meanwhile, banking lobbyists continue their campaign to kill the consumer agency by meeting with Treasury officials and sending letters to Congressional leaders. Illinois Representatives Melissa Bean and Bill Foster serve on the House Financial Services Committee and need to hear from constituents in the 8th and 14th districts. Rep. Foster’s staff is hosting neighborhood office hours throughout the 14th district through the end of August.