October 2009 Developments - 32

T hus far, 2009 has certainly been a challenging year from a Fed Leg perspective. My lengthy article from this past Convention issue of Developments covered in-depth what had happened up through March of this year—addressing the turn from 2008 to 2009 and all that happened in the economy in the aftermath of the sub-prime debacle. This dramatically affected the vacation ownership industry with the introduction of predatory lending/mortgage finance bills and frozen credit markets. Much has transpired since that last article. ARDA has diligently monitored key issues, particularly at a time when the federal government seeks to increase regulation and toughen restrictions on business practices that will have direct and potentially negative effect on the timeshare/vacation ownership industry. Here’s the line-up of our top four issues right now and where ARDA stands, in terms of position and what steps of action are being taken. Keep in mind, however, that things may have changed since this article was written. H.R. 3126 Consumer Financial Protection Agency Act of 2009 ARDA supports stronger, sensible consumer protections. While some elements of H.R. 3126, the Consumer Financial Protection Agency (CFPA) Act of 2009, make sense, ARDA has serious concerns over the legislation in its current form. We commend Congress for their continued commitment to passing comprehensive financial regulatory reform legislation, including enhanced and effective consumer protection. However, ARDA remains concerned that this legislation could advance without sufficient time to fully assess the cost to consumers and impact on businesses from all sectors of the economy. The scope of this legislation is very broad, granting unprecedented power and authority to a new agency with very few checks and balances on its power. 32 There are numerous questions that have not been sufficiently answered, regarding which entities and types of business activities are covered by H.R. 3126. Once again, it appears that timeshare is an unintended consequence of this legislation. The intended benefits to consumers of many of the bill’s provisions are unclear. Both of these shortcomings raise a very real probability that there will be significant dangerous, unintended consequences if the legislation is enacted in its current form. In fact, it appears that many of the most critical decisions about the full scope of and manner in which this agency will define and exercise its expansive authority are delegated by Congress and left up to the new agency without significant oversight. ARDA is concerned that the proposed CFPA (as drafted) would: • Create a cumbersome, ineffective, and unwieldy new regulatory framework that would inject consumer finance with significant uncertainty and stifle legitimate financial innovation; • Impede efforts to restart the lending process, instill consumer confidence, and increase consumer spending; and • Deprive consumers of what they actually want and need: affordability and choice. Here are some key controversial points of this bill as identified by a broadbased coalition led by the U.S. Chamber of Commerce: (1) Consumer protection could actually be weakened. There is a substantial risk that the CFPA could actually weaken consumer protection by divorcing regulatory expertise about the underlying financial institution from product approval and regulation. (2) Nationalization of consumer finance. CFPA would require institutions to offer government-mandated products, but the government does not have the market insight or Developments • October 2009

October 2009 Developments

Table of Contents for the Digital Edition of October 2009 Developments

October 2009 Developments - 1
October 2009 Developments - C1
October 2009 Developments - I1
October 2009 Developments - I2
October 2009 Developments - I3
October 2009 Developments - I4
October 2009 Developments - 4
October 2009 Developments - 5
October 2009 Developments - 6
October 2009 Developments - 7
October 2009 Developments - 8
October 2009 Developments - 9
October 2009 Developments - 10
October 2009 Developments - 11
October 2009 Developments - 12
October 2009 Developments - 13
October 2009 Developments - 14
October 2009 Developments - 15
October 2009 Developments - 16
October 2009 Developments - 17
October 2009 Developments - 18
October 2009 Developments - 19
October 2009 Developments - 20
October 2009 Developments - 21
October 2009 Developments - 22
October 2009 Developments - 23
October 2009 Developments - 24
October 2009 Developments - 25
October 2009 Developments - 26
October 2009 Developments - 27
October 2009 Developments - 28
October 2009 Developments - 29
October 2009 Developments - 30
October 2009 Developments - 31
October 2009 Developments - 32
October 2009 Developments - 33
October 2009 Developments - 34
October 2009 Developments - 35
October 2009 Developments - 36
October 2009 Developments - 37
October 2009 Developments - 38
October 2009 Developments - 39
October 2009 Developments - 40
October 2009 Developments - 41
October 2009 Developments - 42
October 2009 Developments - 43
October 2009 Developments - 44
October 2009 Developments - 45
October 2009 Developments - 46
October 2009 Developments - 47
October 2009 Developments - 48
October 2009 Developments - 49
October 2009 Developments - 50
October 2009 Developments - 51
October 2009 Developments - 52
October 2009 Developments - 53
October 2009 Developments - 54
October 2009 Developments - 55
October 2009 Developments - 56
October 2009 Developments - 57
October 2009 Developments - 58
October 2009 Developments - 59
October 2009 Developments - 60
October 2009 Developments - 61
October 2009 Developments - 62
https://www.nxtbookmedia.com