Congressman Adam Putnam today blasted legislation to create a “Washington Knows Best” agency aimed at giving unprecedented authority to bureaucrats. Putnam said the measure will actually harm American consumers and community banks and credit unions.  The measure, the Consumer Financial Protection Act (HR 3126), was passed along party lines by the House Financial Services Committee today.  Putnam, a member of the Committee opposed final passage.

“The entire premise of the bill is flawed,” said Putnam. “It is bad for merchants. It is bad for small businesses.  Above all, it is bad for consumers.  Rather than protecting Americans, this legislation will erect more barriers for the ability of hard-working Americans to pursue their dreams; to obtain their homes; to refinance the home that perhaps they’re upside down on; to expand their small business or to hang onto their small business.”   

“It is important to find a solution that enacts stronger consumer protections, transparency and accountability throughout the financial community, while still yielding room for small businesses, community banks and credit unions to meet the credit needs of consumers.  Unfortunately, this bill would limit the ability of both consumers and communities to access credit and create new jobs.”

During a debate, Putnam noted that some of the bill’s supporters had “painted the entire financial services industry with one brush and put black hats on all of them.  They ignore the fact that community banks and credit unions play important roles in our communities.”

Listing specific concerns, Putnam and other Republican members of the committee said HR 3126 would:

• Undermine national markets and requires financial institutions to navigate a patchwork of often-conflicting state laws.
• Create a new government agency that separates consumer protection from safety and soundness regulation.
• Give unprecedented authority to Washington bureaucrats to write and enforce rules beyond those authorized by Congress.

Since 2001, Putnam has represented Florida’s 12th Congressional District, which includes most of Polk County and portions of Hillsborough and Osceola counties.