WASHINGTON—(ENEWSPF)—April 28, 2010. Today, Senate Banking Committee Chairman Chris Dodd (D-CT) issued the following statement responding to false claims by the Chamber of Commerce and Senate Republicans that the new bureau to protect consumers from abusive financial products and services would cover orthodontists and other small businesses offering customers a line of credit.
“Another day, another misrepresentation of our efforts to bring accountability to Wall Street.”
“Today the Republican Leader came to the Senate floor and repeated the Wall Street lobbyist claim that somehow the new consumer financial protection bureau would bring new regulation to orthodontists and others who simply allow customers to pay over time.”
“This new Bureau will protect consumers from abusive financial products and services like the outrageous practices we’ve seen by credit card companies, or the subprime mortgages that left millions in foreclosure and fueled the economic crisis.”
“But the bill specifically excludes merchants, retailers, or others “not engaged significantly in offering or providing consumer financial products or services.’”
“An orthodontist is not a significant financial player. If your orthodontist, or doctor, or dentist lets you pay your bill over a series of months, they’re not covered. If your local grocer or butcher keeps a tab and bills you at the end of the month, they’re not covered.”
“Now, if you have a store credit card, that credit card falls under the same rules and regulations as a bank credit card. If your auto dealer just sells cars, they’re not covered. But if that auto dealer makes you a loan, then you’ll have the same protections you would have if you paid for that car with a loan from your community bank.”
Section 1027 of the Wall Street reform bill makes clear that folks for whom extending a line of credit is incidental to their business won’t be covered.
(C) LIMITATION.—Notwithstanding subparagraph (B), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority under this title with respect to a merchant, retailer, or seller of nonfinancial goods or services that is not engaged significantly in offering or providing consumer financial products or services.
Read it for yourself: p. 1116 at http://banking.senate.gov/public/_files/TheRestoringAmericanFinancialStabilityActof2010AYO10732_xml0.pdf