The executive vice president of the American Financial Services Association more commonly known as the AFSA, Bill Himpler turned his attention to the Consumer Financial Protection Bureau’s extensive supervisory reach over the consumer credit business which is regulated by respective states. This industry largely consists of payday money lenders who make products like e payday loans available to customers in desperate need for quick cash. These customers generally belong to the poorer sections of the society and have no affiliations with established traditional banks. Hence, they are forced to turn to services like this which serve as their last hope in many situations.
Bill Himpler also spoke about the need for Congress to modify the Consumer Financial Protection Bureau’s actions. He said that an approval needs to be given by the Congress on its budget and he also mentioned the need to amend the federal agency’s structure. These opinions were meted out the day after the Consumer Financial Protection Bureau’s official semi-annual visit to the United States House, as Himpler accompanied three other specialists in attesting to the subcommittee of House Financial Services on Financial Institutions and issues concerning consumer credit services in a sitting entitled, – The Examination (thorough analysis) of the Federal Financial Regulatory System (FFRS) and Prospects for Reform.
By providing a memo, the subcommittee specified that providers of economic facilities are usually subject to a variation of supervisory and administrative requirements. This court hearing was made ready to inspect the influence the regulations and procedures have had on financial corporations and their consumers from federal monetary agencies, especially the-
- Federal Reserve System – the fundamental banking system of the country.
- The Office of the Comptroller of the Currency
- The Federal Deposit Insurance Corporation
- The Consumer Financial Protection Bureau
- The National Credit Union Administration
Legislators and policymakers noted the court hearing was also about to inspect chances for reform of these other major federal financial agencies. The factor kept in mind was the target of refining transparency, answerability and due procedure of structured officials and bodies and their customers.
Himpler pointed out that though many are absorbed on the vast size of such financial institutions deeming them too large to bomb, American Financial Services Association was worried about the financial institutions which were deemed too trivial to prosper under the burden of Consumer Financial Protection Bureau’s extensive regulations.
Himpler stated that the American Financial Services Association strongly believed that short term or long-term credit must be made available to every citizen who has the capability of managing it. He said that such facilities should not be restricted only to the rich and wealthy or to the upper middle-class people who can afford a high credit score. In written testimony, Himpler said that he was not sure that the Consumer Financial Protection Bureau made it apparent enough to show that it shared this ideology of his. He further added that the federal agency was showing indications of being believers in the theory that credit must only be made available to those debtors who do not show any signs of risk. Former acting assistant secretary for financial institutions at the Treasury Department, Amias Moore Gerety said that residents and taxpayers should be the fundamental consideration when assessing variations to our governing system.
The American Financial Services Association’s position on the Consumer Financial Protection Bureau made it clear that they were embodying what had been on the minds of many Americans. The federal agency’s fight against services like e pay day loans and their providers the payday money lenders is against the interests of millions of American citizens who do not have access to traditional banks.