I would think that if they managed to consolidate 7 offices into 1, that would be smaller government! Of course, the likelihood of the government shrinking is pretty low.

My question: what's to keep the new agency from ending up like the variety of agencies that were supposed to provide oversight of the financial industry: packed full of people whose only concern seemed to be to ignore any problems with the financial industry? Quite a few of our protective regulatory bodies seem to not be regulating much of anything. How will the CFPA be any different?

@Quill2006: smaller gov't? Now, that's just red talk!

What actual legal and regulatory authority would this Agency have? And how would a ~pro-business~ administration gut this agency's power later down the road (ie CPSC)?

Ooooh, another agency to fund and allow people to get Federal salaries and pensions that are more than typical in the private market. And another group of people to be lobbied by high paid pro-business lobbiests...

Can they roll the usury laws back to say 1970 before the credit card industy got boutique laws passed to help that industry grow?

[www.usdebtclock.org]

I'm just gonna go ahead and post this on any and every topic having anything to do with the federal government; to remind everyone of just what we're dealing with here.

@smartmuffin: I had to get off that website, head started pounding! Eyes almost popped off my face!

Is there any proposed oversight of the credit bureaus? Your credit report and score affect so many aspects of your life and right now, the onus is on you to correct any mistakes, even if the mistakes weren't your fault. I've been trying for over a year to get a medical collections charge removed from my report and the bill was never IN collections! I have proof, I've faxed, certified mailed and spent countless hours on the phone trying to get this removed. Every time I've been successful, it pops back up on the report.
So, I guess my question is, will the credit bureaus have someone to be accountable to?

My Question to Diana Farrell:

"I agree with the need to reform the current financial regulatory system. Besides the high level plan of consolidating consumer protection power into one agency, what actions do you believe hold the most promise of achieving this reform quickly, effectively, and with minimum cost and effort?"

I'm confused by how the separation of powers and Federalism impacts this. (I'm a fan of the concept of the CFPA, by the way).
If the Executive says, say, Payday Loans over [x] rate is bad, then is this a law or a recommendation? What power would such a CFPA statement have on say, states' laws that allowed higher rates? At what point would Congress need to get involved to make it into a law? What if a different Executive department differed with such a finding?

And, what measures are you taking to ensure that the CFPA isn't captured by industry lobbyists, either now or after a new administration takes over?
Similarly, what measures are you taking to ensure that independent consumer groups have a strong voice in your organization?
How will you ensure that the board is fluid enough that new people with fresh perspectives are represented?

And, would the CFPA also examine systemic risks in the consumer finance sector? For instance, the same securitization that impacted home mortgages also occurs with credit card debt. Would the CFPA have the authority to evaluate such programs that look good on paper yet pose hazards when implemented? And if so, at what stage would the CFPA get involved, in light of the fact that the person that tries taking away the punch bowl when the party's raging faces open hostility?

What is the extent to which products which are deemed illegal will be pushed into the black market? I am particularly thinking of payday loans, which prior to the opening of many of the small shops that do them now, tended to involve many broken kneecaps.

How come when I pay my cell phone bill online by credit card, it takes but a few seconds to get confirmation on my phone that payment was received, but when I make an electronic payment to my credit card it can take up to three days to "process" it?

@Blueskylaw: ACH transactions can actually take three days to clear.

My question:

Why should we trust the same people who passed CSPIA (which is currently, inter alia, causing libraries to consider eliminating Childrens' Books pre-1984) to pass a responsible Finanical Product Regulation Proposal?
Law of Unintended Consequences, people!

@Quill2006: And I'm sure the various senators will gladly reduce the influence they have for each of their committees.

If increased regulation would have prevented an economic crisis, didn't the Bush administration do more than enough?
[www.mercatus.org]

Will the CFPA have any actual legal authority to investigate and prosecute companies or individuals that violate its tenets?

@MooseOfReason: If Republicans like Chris Cox are running things, no manner of cunning regulation and oversight can keep us from peril.
See: "Heck of a job, Brownie" & New Orleans.

> If you vote in people who think that government is always the problem, they'll work hard to not disappoint you. <

I have three qquestions...What will the CFPA do to level the playing field between the consumer and the credit report agencies? What will the CFPA do that the other agencies (already set up)don't alredy do? And, how can we be sure that CFPA will be transparent?

What will direct the agencies goals? Will be be a complaint based system like the AG office or something else?

Will the directives issued have an effect like a judicial precedent or will it simply enforce existing laws?

Does the agency just get to decide something does not feel right and take action?

Will this office punish specific companies or impose regulations on industries?

What is the limit of power the agency has? Can it just fine a company out of existence?

The best thing I can recommend for this process is a consumer feedback system. So that when a threshold of complaints is reached an investigation is launched. At the conclusion of the investigation action may be taken. We need to avoid little napoleons with susceptibility to industry manipulations.

@Crabby Cakes: An extension to Crabby Cakes' question might be: What kind of reforms can we expect to see being made at the credit reporting agencies?

@wcnghj: They expedite it when they're taking my money, though?

Can this panel enforce laws intended to be used on large, overbearing corporations (like Walmart or Chase) on small businesses like the local hardware store or pizzeria?

If not, please provide adequate evidence that supports that it "cannot at all" and not, for example: "can, but won't because it's not in the spirit of the panel."