The U.S. Department of the Treasury submitted draft legislation for the Consumer Financial Protection Agency Act of 2009 in July,
shortly after the Department proposed this new agency as part of the Administration’s overall plan to reform financial services regulation. The Consumer Financial Protection Agency (CFPA) would have significant powers to issue new regulations and toughen existing regulations of consumer financial products. It would also take over the responsibilities of enforcing existing consumer protection laws from federal regulators, including the Federal Reserve Board and the Federal Trade Commission. Under the Act, the CFPA’s rules and regulations would function as a floor for individual states that could impose more stringent consumer protection regulations.