House Financial Services Committee

Life insurers and banks criticized the administration’s proposal for a Consumer Financial Protection Agency at a House Financial Services Committee hearing. The Obama plan calls for an Office of National Insurance within the Department of the Treasury, to gather information and coordinate policy development concerning insurance, but it would not have regulatory power.

On Wednesday legislation meant to more strictly regulate the credit card businesses passed the House with majority of 48 to 19 having voted for the bill. Bill of Rights which in practice would codify into law restrictions on deceptive practices issued by the Federal Reserve in December. The new act if passed through the Senate would prevent credit card issuers from saddling cardholders with arbitrary interest rate increases and penalties as well as stop some billing practices.