Chamber calls for parameters to consumer protection agency

The U.S. Chamber of Commerce on Thursday reiterated its warning that the consumer protection agency in the Senate financial reform bill will apply to non-finance firms.  

The protection agency is expected to oversee companies where extending credit is a significant portion of its business. The Chamber argues that the bill fails to define when extending credit crosses that threshold. 

"If an orthodontist allows 70 percent of his/her patients to pay in six or twelve installments, is that significant to the practice," the Chamber stated in a release. "If an electrician allows 50 percent of his customers to pay in installments, is that significant to his business? What about a lawn service that charges interest to any of its customers who don't pay in 30 days -- is that significant?" 

Senate Banking Chairman Chris Dodd (D-Conn.), who authored the bill, said Section 1027 of the bill prevents these companies from being subjected to the agency because they do not extend credit at a significant level. The Chamber argues that without a firm definition for what constitutes "significant" there is no bright line for which companies will fall under the agency's jurisdiction.  

"We are glad that Senator Dodd agrees that the orthodontist, butcher and baker should not be covered by the [agency]," said Chamber representative David Hirschmann in prepared remarks. "Unfortunately, the legislative language that is currently being considered by the Senate continues to cover them. If the intent is to exclude them, we urge Senators to amend the language."