Small Businesses, Local Chambers and Citizens Send 200,000 Letters to Congress Opposing Consumer Financial Protection Agency

April 6, 2010

Cape Fear Business News

WASHINGTON, D.C.—The U.S. Chamber of Commerce announced today that its grassroots efforts have mobilized small business owners, local chambers, and citizens to send more than 200,000 letters to their congressional members to voice strong opposition to the proposed Consumer Financial Protection Agency (CFPA).

“There’s a right way to go about financial reform and a wrong way. The proposed CFPA is the wrong way to protect consumers and reform regulation,” said David Hirschmann, president and chief executive officer of the Chamber’s Center for Capital Markets Competitiveness (CCMC). “Another large layer of government bureaucracy with unprecedented reach and powers will needlessly impact businesses that had nothing to do with the financial crisis.”

The letters, generated from the Chamber’s vast grassroots network and written by citizens from all 50 states, oppose the CFPA approach and call for a better way to strengthen consumer protection. States generating the greatest number of letters include Ohio, Florida, California, Pennsylvania, and Colorado. In addition, small businesses are reaching out to members of Congress to express disapproval of specific provisions that hurt them. Specifically, the bill would result in reduced access to credit for small businesses, and would enable the new consumer financial regulator to regulate merchants, retailers, doctors, and public utilities. The language in the bill is vague and could also impose new regulations on any business that permits customers to pay in more than four installments or on a business that applies interest charges for late payments.

“We need bipartisan regulatory reform that provides strong oversight of our financial system and enables continued economic recovery,” said Hirschmann. “We must make sure that existing regulators are well coordinated, customers have clear information, and there is effective enforcement against fraudulent and predatory practices. We don’t need to create a new layer of bureaucracy on top of a broken system. We need a better government, not bigger government.”

Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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