Why I Supported the Financial CHOICE Act
Congressman Lamborn explains his vote to repeal some provisions of Dodd-Frank and strengthen consumer protections.
Financial laws and regulations may seem too complex and removed to have any impact on everyday life. But every American who has money in a checking or savings account, works for a small business, or pays taxes has been impacted by the faulty regulations put forward in Dodd-Frank.
The Financial CHOICE Act is a response to Dodd-Frank designed to help boost our economy and protect consumers from future financial meltdowns.
Here are five ways that this new legislation could benefit your life:
Creating More Available Capital for Small Businesses
Any startup or small business needs access to capital in order to expand its operations. But the passage of Dodd-Frank made it more difficult and more costly for small banks to give loans. The Financial CHOICE Act removes the expensive mandates from Dodd-Frank, which is predicted to free up more capital for business owners and aspiring entrepreneurs.
According to the Small Business & Entrepreneurship Council:
“Access to capital remains a challenge for startups and growing firms, and Chairman Hensarling’s Financial CHOICE Act addresses critical areas to improve capital formation and strengthen the capital and financial markets. For example, onerous Dodd-Frank regulations are unfairly burdening small banks, which has tightened loan availability and unnecessarily raises the costs of capital for small businesses. The Financial CHOICE Act makes key revisions that will allow community banks to fully get back to business, financing the startups and local small businesses that are critical to the sustainability and growth of local communities and cities.”
Increasing Access to Credit Cards and Checking Accounts for Individuals and Families
Under Dodd-Frank, free checking has been reduced by 50%. Many people have also lost the option to sign up for a credit card. When these financial options aren’t available, individuals and families have a harder time saving money, which is bad for their budget and bad for the economy as a whole.
The Financial CHOICE Act will allow small banks and credit unions to expand access to credit and checking, restoring personal freedom and financial choices back to consumers across the country.
Eliminating Regulatory Burdens
Without Dodd-Frank’s regulations in place, small and medium businesses will spend less on compliance. That means there will be more money available to hire new employees, raise wages, and boost the economy as a whole.
“We appreciate Chairman Hensarling’s provisions that tackle some of the regulatory burdens shouldered by Main Street, community financial institutions — especially the consideration it gives to credit unions’ supervisory concerns. -Credit Untion National Association (CUNA)
Protecting Consumers — not Big Banks
The Financial CHOICE Act imposes the harshest penalties in history on financial institutions that commit fraud and harm consumers. It also establishes a budget for financial regulations and requires a cost-benefit analysis for all rules so that institutions are accountable to Congress for their actions.
Community banking associations have endorsed the Financial CHOICE Act for the stability it provides. As the Consumer Bankers Association (CBA) said:
We applaud Chairman Hensarling for his persistent commitment to seeking needed changes to the Dodd-Frank Act that will bring balance and consistency to an industry serving millions of consumers.
Blocking Taxpayer Funded Bailouts
The Financial CHOICE Act definitively ends the era of “too big to fail.” Instead of taxpayer funded bailouts for failing firms, the CHOICE Act gives the American people protection from failing banks without holding them financially responsible.
The Center for Freedom and Prosperity described the benefits of the Financial CHOICE Act this way:
“[The Financial CHOICE Act] ends too-big-to-fail and taxpayer bailouts of financial institutions, and replaces complex and arbitrary governance by bureaucrat with transparent rules that respect economic liberty. Congress should embrace his reforms as a counter to the failed, top-down approach of the last decade…..Congress should make enacting his recently announced agenda a priority.”
Congressman Doug Lamborn represents Colorado’s Fifth District. For more information about his legislative efforts, please visit his official website.