Amendments Stregthen Consumer Education, Increase Agency Reporting Requirements

Washington, DC – Rep. Joe Baca (D-Rialto) introduced two amendments to the Consumer Financial Protection Agency Act (H.R. 3126) that will add new consumer education and financial literacy provisions to the legislation, and strengthen the reporting requirements of the proposed agency.  The amendments were unanimously agreed to by the House Financial Services Committee, an exclusive committee on which Rep. Baca serves.  H.R. 3126 was approved by the Financial Services Committee today, and now moves to consideration before the full House of Representatives.

The Consumer Financial Protection Agency (CFPA) is a proposed regulatory body, and a key piece of the Obama Administration’s financial reform plan, that will oversee the federal government’s regulation of most major financial institutions and products. 

“Our current economic crisis is a direct result of the excessive greed and irresponsible practices that dominated our financial markets over the past decade,” said Rep. Baca.  “The Consumer Financial Protection Agency will provide the American people with the strong oversight necessary to prevent another collapse of our financial markets, and protect consumers from predatory practices while also ensuring their access to necessary credit.”

The first of Rep. Baca’s amendments, introduced in conjunction with Rep. Carolyn McCarthy (D-NY) and Rep. Ruben Hinojosa (D-TX), allows the CFPA to establish a unit to promote consumer education and develop programs and initiatives to increase awareness and promote financial literacy. 

The second Baca amendment adds further criteria to the reporting requirements for the new CFPA.  Specifically, the amendment calls for the CFPA to include in its annual report to Congress and the President, an analysis of the difficulties they have encountered in the financial markets, and address new trends that may impact consumer protection.   

“I am proud to offer these amendments that increase consumer protections, and provide new opportunities for financial literacy within the CFPA,” added Rep. Baca.  “Only through increased education and outreach can we provide the most vulnerable Americans with the information they need to make the financial decisions that are right for them.  And by increasing the reporting requirements of the CFPA to Congress and the Administration, we can ensure our federal regulators always stay a step ahead of the bad apples that are looking to take advantage of others.”

“As the last few years have shown us, our current system of consumer protections has failed to adequately protect Americans from financial exploitation and abuse,” concluded Rep. Baca.  “The legislation approved by the Financial Services Committee today will finally bring about necessary accountability and transparency to our financial markets, and will increase economic opportunities for all Americans.”