Dear Member,

You are reading the first of many Washington Updates for 2010.  To keep you informed and engaged regarding our activities in Washington, DC and elsewhere, we will bring you these Legislative Updates very often - as often as events dictate. 

Best Regards,

Bill Sellery, FiSCA Washington Representative

CHAIRMAN FRANK MISCHARACTERIZES NATURE OF INDUSTRY

Last week, Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, issued a memo to members of his committee regarding “Inaccuracies about CFPA Exemptions”, referring to the proposed Consumer Financial Protection Agency.  Frank stated, “Importantly, the new agency will also have authority with respect to the now lightly or unregulated institutions such as payday lenders and check cashers firms which are especially important to lower income families.”

In response, FiSCA Chairman Joe Coleman prepared a letter to Rep. Frank defending the industry in which he stated, "It is a gross mischaracterization of our industry to state these are “lightly or unregulated” businesses. Nothing could be further from the truth. In fact, our businesses must comply with a wide array of federal and state regulations."(Summary of State Check Cashing Laws (M)  ,Summary of State Laws Governing Payday Advances (M))

SENATE CONSIDERATION OF CFPA 

The U.S. House has already passed the CFPA, and the Senate is poised to take up the issue soon. Under the guise of consumer protection, this newly proposed federal agency would have the power to dictate the terms and conditions of every single product you offer.  It would be a bureaucratic nightmare – an extremely harmful yet impending possibility that could devastate the future of our industry.

FiSCA and CFC have jointly developed a comprehensive and far-reaching strategy designed to give us the best chance for success in preserving our businesses.  Our basic positions will be to

1.) Oppose CFPA on the basis of existing regulation.  It would add a bureaucratic layer with no corresponding benefit to consumers

2.) Oppose any restrictive Payday Advance legislation

3.) If CFPA is authorized, support an exemption for check cashers.

So get your list of Washington contacts ready.  We will be calling on you soon to contact your U.S. Senators.

US SUPREME COURT DECIDES LANDMARK CAMPAIGN FUNDRAISING CASE
By a 5-4 vote, the Supreme Court has thrown out a 63-year-old law designed to restrain the influence of corporations and unions on elections, ruling that corporations may spend as freely as they like on political ads to support or oppose candidates for president and Congress. It leaves in place a prohibition on direct contributions to candidates from corporations and unions. The decision threatens similar limits imposed by 24 states, according to recent media reports.  So what does this mean for FiSCA?  Plenty.  Just ask Bill and Ed D’Alessio, FiSCA’s Deputy General Counsel.

If you have questions, comments or news of your own to contribute, please contact Bill Sellery or Theresa Murzyn at Sellery Associates.  We will be in touch next week.

About FiSCA

FiSCA, founded in 1987, is the national trade association for more than 6,500 individual financial service centers across the United States.

About CFC

The Coalition for Financial Choice is comprised of companies, trade associations and other organizations that believe that all Americans are entitled to basic fundamental rights with regard to financial services. The mission of the Coalition is to:

Advocate for equal access to financial services and credit for all consumers Encourage innovation in providing financial services in order to lower consumer costs

Improve consumer protections through education, disclosure and transparency in all financial transactions

Help consumers build credit and provide them with opportunities to create savings and build wealth

To learn more or to join visit the Coalition for Financial Choice.