Columbus, OH – Treasurer Kevin Boyce, Ohio Governor Ted Strickland, Lt. Governor Lee Fisher, and Attorney General Richard Cordray today sent the following letter to members of the Ohio Congressional Delegation encouraging the creation of a Consumer Financial Protection Agency.
Dear Members of the Ohio Congressional Delegation:
As the State of Ohio’s elected officials with responsibility for ensuring the financial well-being of all Ohioans, we urge your support of the creation of a Consumer Financial Protection Agency (CFPA). One year after the most troubling financial events of our lifetimes, it is clear that we need a new federal agency dedicated to holding accountable federally-regulated banks, credit card issuers, mortgage lenders, and other finance companies.
Together, we have responsibility for regulating Ohio’s financial services industry, protecting Ohioans from illegal and predatory businesses practices, and educating Ohioans about smart money choices. Although Ohio has a history of strong enforcement of consumer protection laws for state-regulated businesses, we have lacked the authority to regulate federally-chartered institutions.
What we have unfortunately learned over the past several years is that the divided authority of multiple federal regulators permitted too many lenders to exploit loopholes in the system. Additionally, federal regulators with the primary mission of ensuring the safety and soundness of financial institutions have limited time and resources to dedicate to consumer protection. The CFPA would consolidate federal consumer protection efforts in a single agency, as well as empower state regulators and attorneys general to enforce state laws when they are broken by national financial institutions.
In Ohio, we have strong consumer protection laws, but the existing patchwork of federal regulations leaves too many Ohioans vulnerable to subprime mortgages offered by out-of-state lenders and credit card disclosures full of deceptive fine print. A federal agency to ensure Ohioans are not the victims of abusive and predatory practices is needed now.
We also urge you to reject efforts to preempt state laws. Preserving states’ abilities to enact and enforce strong consumer protection laws like the Ohio Homebuyers’ Protection Act (Senate Bill 185 of the 126th General Assembly) is also imperative. S.B. 185 prohibits unfair, deceptive, and unconscionable mortgage lending practices, and gives the Ohio Attorney General enforcement authority. It is an example of a state law that protects consumers and fills a gap where federal law and regulations have fallen short.
We stand ready to work with you toward passage of legislation before the end of the year to create a Consumer Financial Protection Agency that will build a foundation of financial stability for Ohioans, Ohio’s businesses, and our state’s economy.
Sincerely,
Ted Strickland Lee Fisher
Governor, State of Ohio Lieutenant Governor
Richard Cordray Kevin Boyce
Attorney General Treasurer
To read more, visit: www.ohiotreasurer.gov
Media Contact: Simone Wilkinson/614-644-4407