Jan 15, 2010
Update - Consumer Financial Protection hits speed bump
New regulations may still affect non-profit ogranizations
In an article today, the Wall Street Journal reported that Senate Banking Committee Chairman Christopher Dodd (D-CT) may be willing to drop the Consumer Financial Protection Agency (CFPA) from the broader financial regulatory reform legislation, in order to ensure the passage of the broader bill with bipartisan support. Aides close to the negotiations have said that in return, Republicans must agree to create a strong consumer-protection division within another federal agency.
What this means for the nonprofit world is unclear. We will have to pay close attention to the directive and authority given to any new consumer division within the Treasury. ACR has been concerned about the current legislation’s expansive definition of “financial activity” (which would be regulated by the proposed CFPA). This definition could draw in nonprofits because of organization’s fundraising efforts (charitable giving advice/planning/donor instruction) or if the nonprofits include any financial education (no matter how basic), credit counseling, debt management, or tax planning (other than return prep) as part of their programming.
ACR will continue to monitor developments on this legislation and will keep you posted on the latest.
It’s not to late share your (or your grantees’) story on how CFPA may affect your work with Congressional offices. Contact us today(.(JavaScript must be enabled to view this email address))!