Resolution in Opposition to a Consumer Financial Protection Agency
WHEREAS, Congress is considering legislation which would create a Consumer Financial Protection Agency (CFPA); and
WHEREAS, the CFPA is a new federal agency that will increase spending and taxes during a time when our nation is running a record deficit; and
WHEREAS, the CFPA will diminish choices for consumers, place burdensome regulations on businesses, place federal mandates on the states, and create a new patchwork of regulations for national banks; and
WHEREAS, the end result of the CFPA will be that many consumers and businesses will be denied access to credit; and
WHEREAS, the U.S. Chamber of Commerce wrote the result of this legislation would be “business closures, fewer startups, and slower growth. Overall this would cost a significant number of jobs;” and
WHEREAS, the CFPA deprives states of the right to continue to regulate industries within their own borders; and
WHEREAS, the CFPA deprives federally chartered institutions of the ability to operate under one coherent set of regulations; and
WHEREAS, David Evans of the University of Chicago and Joshua Wright of George Mason University wrote, “[T]he CFPA would: increase the interest rates consumers pay by at least 160 basis points; reduce consumer borrowing by at least 2.1 percent; and reduce the net new jobs by 4.3 percent;” and
THEREFORE BE IT RESOLVED; [insert state here] opposes the creation of a Consumer Financial Protection Agency.
Approved by ALEC Board of Directors on May 4, 2010.