With Financial Reform Now Signed into Law, What Comes Next? – August 5, 2010
Now that President Obama has signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, it is logical to ask, what’s next?
The Coalition for Financial Choice opposed the financial reform bill because it was too all-encompassing. Industries and products that had nothing to do with the financial meltdown that precipitated the need for finance reform in the first place were incorporated into the jurisdiction of the newly created Bureau of Consumer Financial Protection (BCFP). This includes non-banks offering small loans and check cashing services. In addition, given the extensive state and federal laws that alternative financial service providers already must comply with, it is doubtless that consumers will experience meaningful benefits from BCFP, as it applies to this industry. At the same time, we can anticipate considerable compliance-related costs associated with the new regulations that will doubtless be coming from BCFP.
Looking forward, implementation of the financial services reform legislation will be a complex and time-consuming process. With regard to the BCFP, it will probably take six to twelve months for the BCFP to get up and running. And, while it is impossible to say with certainty, it is estimated that this process could take two to three years before the CFPA could implement major regulatory and enforcement initiatives.
CFC will continue to be very active in this next phase of financial regulatory reform. It is important that the federal government not over-regulate products that already must comply with an array of strict regulations at the state level. We also will be working to make sure that as this process continues the bureaucrats in Washington understand the impact their actions could have on the millions of hard-working Americans who use alternative financial service centers every day.
In the meantime, thanks to the 600,000 Americans who have joined CFC and are helping us to ensure that non-traditional financial institutions, like check cashing and payday loan stores, are able to provide the basic financial services millions of people depend on every day. As BCFP gets up and running and starts to issue new proposed regulations, CFC will continue to fight on your behalf.