Comments for Consumerist Takes Your Financial Reform Questions To The White House, Part II

Consumerist Takes Your Financial Reform Questions To The White House, Part II

2009-10-18T19:03:29Z

Last week, we brought your financial reform questions to Diana Farrell, Deputy Director of the National Economic Council. In this segment, we ask how the proposed Consumer Financial Protection Agency will work, and how consumers will be able to get their complaints addressed.

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Comment from vladthepaler on 2009-10-20

2009-10-20T20:53:54Z

I'm still waiting for a transcript of the first part. Was it posted and I missed it?

Comment from consumerd on 2009-10-19

2009-10-19T23:11:30Z

She doesn't seem serious about the problems. Anyone else pick that up?

Comment from sleze69 on 2009-10-19

2009-10-19T19:20:26Z

@FrugalFreak: They said it would be available shortly. Consumerist taking a page out of the Comcast onsite technician handbook?

Comment from Ben Popken on 2009-10-19

2009-10-19T16:50:57Z

Aces

Comment from FrugalFreak on 2009-10-19

2009-10-19T06:21:50Z

transcript coming?

Comment from H3ion on 2009-10-19

2009-10-19T05:19:54Z

@MooseOfReason: While most agencies have rule making authority, the authority is limited in that it is to be interpretive of the statutes, not expanding or going around the statutes. The only difference is where Congress itself, in passing a law, gives rule making authority to the agency. This is often the case with income tax regulations where the Treasury Department is given the right to make interpretive regulations and those regulations have the force of law.

Example...if the CFPA passes and covers auto-title loans, and the law says that consumers have a 24-hour cooling off period, the agency may write rules requiring the 24-hour cooling off period provision to be provided in writing in 12 point type, but the agency wouldn't have the authority to expand the cooling off period to 48 hours.

Comment from Munchie on 2009-10-18

2009-10-19T02:14:52Z

Nice my question got asked :)
Thanks guys

So what I took from Diana repacked is that guidelines will come from industry regulators. We will then use those guidelines to decide how we as an agency will operate. Customer complaints will be taken into account.

The theory sounds good as long as those being consulted on good industry practices are not getting industry kickbacks and enforcement is not rendered toothless.

Good luck to the whole process

Comment from TCama on 2009-10-18

2009-10-18T22:38:40Z

@Trai_Dep: Yes, that's exactly how it works. Congress can, of course, tell the agency what to do, guide its rulemaking, etc. But legislation generally gives the agencies a certain amount of leeway to make their own rules.

Comment from JackieEggs on 2009-10-18

2009-10-18T22:20:24Z

@twophrasebark: Will PETA be handling the Snuggie for dogs?

*grins, ducks and runs.

Comment from Trai_Dep on 2009-10-18

2009-10-18T22:15:34Z

@MooseOfReason: Many - well, all - of the Exec Branch agencies work on this basis: Congress has oversight over what the President's agencies do, both by funding and by committee. With the Supremes riding shotgun over the enterprise.
Separation of Powers, to the rescue!

Comment from Trai_Dep on 2009-10-18

2009-10-18T21:57:44Z

One of the things that struck me is that it seems as though, for a consumer-oriented program, there aren't any warm, friendly, modern interfaces for the public to make suggestions to the CFPA.
For instance, a website w/ an email form doesn't seem proactive enough.
Will there be a role for more social media to serve as the interface? Will there be a blog, with comment ability (oh my gods, can this turn into a spam-fest, but if done right, it might make the entity more friendly). It'd also be nice if the CFPA served as an online clearinghouse for calculators, FAQs and other reference material.

In short, since this is a consumer-oriented agency, will it be making special effort to leverage social media, and if so, what forms of it would be ideal? What would not?

Comment from MooseOfReason on 2009-10-18

2009-10-18T21:53:24Z

She said it would have "rule-writing authority". Would Congress approve of those rules, or would they automatically be on the books with no oversight?

Comment from Con Seannery on 2009-10-18

2009-10-18T21:24:39Z

@Trai_Dep: BAIT AND SWITCH!

Comment from Trai_Dep on 2009-10-18

2009-10-18T21:08:55Z

OK.
I watched it waaaay past the 3/4s mark, and still no appearance of an eerily floating Earl Tigré.
What gives?

Comment from H3ion on 2009-10-18

2009-10-18T20:37:08Z

While the concept sounds good, the bill has been eviscerated by lobbyists to the point where the agency can do little because it won't have the authority. Example, the insurance industry will be exempt from the CFPA and yet it is one of the industries in dire need of consumer protection regulation. I thought the original concept was something all consumers could support. What is being discussed in Congress now is a bandaid when surgery is required.

Comment from twophrasebark on 2009-10-18

2009-10-18T19:40:43Z

I can assure you that President
Obama is aware of the Snuggie
situation and is taking it seriously.