All Pawtucket All The Time

Kilmartin Asserts that State Attorneys General Must Remain Forefront on Consumer Financial Protection

Pawtucket, RI – Today, the Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd (D-CT) introduced a Senate bill calling for the creation of a Consumer Financial Protection Bureau (CFPB) with the sole purpose of serving as a federal consumer watchdog.

In response, Rhode Island Attorney General Candidate Peter F. Kilmartin asserted that any bill aimed at enhancing the safety and security of consumers must ensure that state Attorneys General maintain jurisdiction over cases involving protection of their constituents.

“Efforts by Congress to further provide federal protection for consumers in the midst of a tumultuous economic climate are too little too late,” said Kilmartin. “In proposing the creation of a federal consumer financial watchdog agency, Congress must ensure that state Attorneys General remain the forefront on protecting consumers. I simply do not trust the federal government to properly utilize its watchdog role. One need only say ‘Bernie Madoff’ as proof of their inability to act.”

“According to the National Association of Attorneys General (NAAG), in the last nine years, federal consumer protection authorities have made 11 enforcement cases against predatory lenders, while state Attorneys General have filed more than 8,000 cases on behalf of their respective constituents,” said Kilmartin. “Therefore, any legislation calling for the creation of a national consumer financial protection agency must make certain that there is concurrent jurisdiction with state Attorneys General. Only if concurrent jurisdiction is established will there be real consumer protection. I urge our Congressional delegation to advocate for state enforcement powers.”

In December 2009, the U.S. House of Representatives passed a version of this bill (H.R. 4173) – sponsored by House Financial Services Chairman Barney Frank (D-MA) – which called for the creation of a Consumer Financial Protection Agency (CFPA). The House bill specified that civil enforcement powers would be preserved for state Attorneys General.

About Peter F. Kilmartin

Peter F. Kilmartin is a former Pawtucket police captain and prosecutor, current state representative (D-Pawtucket), attorney, professor at Providence College, and 2010 candidate for attorney general.