Consumers Union has sent out multiple letters regarding preemption and S. 3217. The most recent letter is copied below.
Click here to read their letter from May 5, 2010: States Must Be Allowed to Protect Their Residents from Harmful Financial Practices
Click here to read their letter from May 4, 2010 regarding amendments to S. 3217.
May 13, 2010
Dear Senator:
OPPOSE THE CARPER AMENDMENT
Don’t Take States and AGs off The Predatory Lending Beat
As the Senate debates the regulatory reform bill, Consumers Union ®, the nonprofit publisher of Consumer Reports®, urges you to oppose the Carper Amendment # 3949. The Carper Amendment would give banks immunity from consumer protection enforcement by State Attorneys General. If you care more about protecting consumers from bank abuses than you care about protecting banks who are violating the law–you should oppose this amendment. The bill’s enforcement and preemption provisions are already a compromise and must not be weakened further.
- State Attorneys General Enforcement of CFPB Rules: The CFPB’s authority to enforce consumer protection laws has already been cut back, and the Carper amendment would remove the ability of State Attorneys General to protect their own residents from predatory lending and other abusive banking practices.
- Immunity from State Law: The amendment makes it easier for national banks to ignore state laws that address new bank abuses not yet covered by federal protection – the state laws we need the most. Preemption prevents states from stopping those abuses before they spread nationally.
It is critical that there are as many cops on the beat as possible to protect consumers from predatory lending practices and unsafe products. We urge you to oppose Amendment # 3949 and any other amendment that weakens the CFPB and the enforcement of its rules. If you have any questions, please contact Gail Hillebrand, (415)431-6747, hillga@consumer.org or Pamela Banks, (202)462-6262, bankspa@consumer.org.
Sincerely,
Pamela Banks Gail Hillebrand
Senior Policy Counsel Financial Services Campaign Manager
Washington Office West Coast Office