MRAA keeps its eye on CFPD
Tuesday, August 7, 2012
What follows is a summary of a recent article published by
the Senate Republican Policy Committee on its concerns over the newly
established Consumer Financial Protection Bureau. As a reminder, MRAA worked
with a maritime lawyer in New York City and the National Automobile Dealers
Association to secure an exemption for boat dealers in the originating language
that was signed into law by the President. However, MRAA continues to follow
this issue very closely because a small group of associations and lawyers are
communicating with the Bureau protesting the boat dealer exemption.
The Republican Policy Committee says the CFPB is exercising
unprecedented investigative and rulemaking authority and unlike other federal
agencies, the CFPB is free to meddle with whole sectors of the nation’s economy
without accountability. The mission
statement of the CFPB says the CFPB is to "make markets for consumer financial
products and services work for Americans by promoting transparency and consumer
choice and preventing abusive and deceptive financial practices.”
The CFPD is not subject to Congressional appropriations
receiving more than $400 million each year directly from the Federal Reserve
without taxpayer approval or adequate oversight by Congress. The agency is free to impose its will on job
creators and consumers virtually unimpeded.
During a recent Congressional hearing, CFPB Director Richard
Cordray implied he would use his enforcement authority to define "abusive”
standard rather than setting it through public comments made during the
rulemaking process. This action will
deny small businesses their right to weigh in on an ambiguous standard that
affects their businesses, employees, and consumers. To help the CFPB along, it
is increasing its staffing from the current 176 employees to 1,359 in 2013.
This is why MRAA worked hard to get
the boat dealer exemption in the law.
The original legislative intent was to apply only to financing
institutions and not oversee businesses in the business of selling
product/merchandise. MRAA will continue
to watch closely the growth of the CFPB.