Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Definitions. 
Sec. 4. Establishment of Commission. 
Sec. 5. Objectives and responsibilities. 
Sec. 6. Coordination of enforcement. 
Sec. 7. Authorities. 
Sec. 8. Collaboration with Federal and State entities. 
Sec. 9. Prohibited acts. 
Sec. 10. Enforcement. 
Sec. 11. Reports. 
Sec. 12. Authorization of appropriations. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) the Nation’s multiagency financial services 
regulatory structure has created a dispersion of reg-
ulatory responsibility, which in turn has led to an in-
adequate focus on protecting consumers from inap-
propriate consumer financial products and practices; 
(2) the absence of appropriate oversight has al-
lowed excessively costly or predatory consumer fi-
nancial products and practices to flourish; and 
(3) the creation of a regulator whose sole focus 
is the safety of consumer financial products would 
help address this lack of consumer protection. 
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) COMMISSION, CHAIRPERSON, AND COMMIS-
SIONER.—The terms ‘‘Commission’’, ‘‘Chairperson’’, 
and ‘‘Commissioner’’ mean the Financial Product 
Safety Commission established under this Act and 
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the Chairperson and any Commissioner thereof, re-
spectively. 
(2) CONSUMER
FINANCIAL
PRODUCT.—The 
term ‘‘consumer financial product’’ includes— 
(A) any extension of credit, deposit ac-
count, payment mechanism, or other product or 
service within the scope of— 
(i) the Truth in Savings Act (12 
U.S.C. 4301 et seq.); 
(ii) the Consumer Credit Protection 
Act (15 U.S.C. 1601 et seq.); or 
(iii) article 3 (relating to negotiable 
instruments) or article 4 (relating to bank 
deposits) of the Uniform Commercial Code, 
as in effect in any State; 
(B) any other extension of credit, deposit 
account, or payment mechanism; and 
(C) any ancillary product, practice, or 
transaction. 
(3) APPROPRIATE COMMITTEES OF THE CON-
GRESS.—The term ‘‘appropriate committees of Con-
gress’’ means the Committee on Banking, Housing, 
and Urban Affairs and the Subcommittee on Finan-
cial Services and General Government of the Com-
mittee on Appropriations of the Senate, and the 
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Committee on Financial Services and the Sub-
committee on Financial Services and General Gov-
ernment of the Committee on Appropriations of the 
House of Representatives, and any successor com-
mittees, as may be constituted. 
(4) CONSUMER.—The term ‘‘consumer’’ means 
any individual and any small business concern, as 
defined in section 3 of the Small Business Act (15 
U.S.C. 632). 
(5) CREDIT.—The term ‘‘credit’’ has the same 
meaning as in section 103 of the Truth in Lending 
Act (15 U.S.C. 1602). 
SEC. 4. ESTABLISHMENT OF COMMISSION. 
(a) ESTABLISHMENT; CHAIRPERSON.— 
(1) ESTABLISHMENT.—There is established the 
‘‘Financial Product Safety Commission’’ which shall 
be an independent establishment, as defined in sec-
tion 104(1) of title 5, United States Code. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—The Commission shall 
be comprised of 5 commissioners, appointed by 
the President, by and with the advice and con-
sent of the Senate. 
(B) CONSIDERATIONS.—In making ap-
pointments to the Commission, the President 
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shall consider individuals who, by reason of 
their background and expertise in areas related 
to consumer financial product safety, are quali-
fied to serve as members of the Commission. 
(3) CHAIRPERSON.—The Chairperson of the 
Commission shall be appointed by the President, by 
and with the advice and consent of the Senate, from 
among the members of the Commission. 
(4) REMOVAL.—Any Commissioner may be re-
moved by the President for neglect of duty or mal-
feasance in office, but for no other cause. 
(b) TERM; VACANCIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2)— 
(A) the Commissioners first appointed 
under this section shall be appointed for terms 
ending 3, 4, 5, 6, and 7 years, respectively, 
after the date of enactment of this Act, the 
term of each to be designated by the President 
at the time of nomination; and 
(B) each of their successors shall be ap-
pointed for a term of 5 years from the date of 
the expiration of the term for which the prede-
cessor was appointed. 
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(2) 
LIMITATIONS.—Any 
Commissioner 
ap-
pointed to fill a vacancy occurring prior to the expi-
ration of the term for which the predecessor thereof 
was appointed shall be appointed only for the re-
mainder of such term. A Commissioner may con-
tinue to serve after the expiration of such term until 
a successor has taken office, except that such Com-
missioner may not continue to serve more than 1 
year after the date on which the term of that Com-
missioner would otherwise expire under this sub-
section. 
(c) RESTRICTIONS ON OUTSIDE ACTIVITIES.— 
(1) POLITICAL AFFILIATION.—Not more than 3 
Commissioners may be affiliated with the same polit-
ical party. 
(2) CONFLICTS OF INTEREST.—No individual 
may serve as a Commissioner if that individual— 
(A) is in the employ of, holding any official 
relation to, or married to any person engaged 
in selling or devising consumer financial prod-
ucts; 
(B) owns stock or bonds of substantial 
value in a person so engaged; 
(C) is in any other manner pecuniarily in-
terested in a person so engaged; or 
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(D) engages in any other business, voca-
tion, or employment. 
(d) VACANCIES; QUORUM; SEAL; VICE
CHAIR-
PERSON.— 
(1) VACANCIES.—No vacancy on the Commis-
sion shall impair the right of the remaining Commis-
sioners to exercise all the powers of the Commission. 
(2) QUORUM.—Three members of the Commis-
sion shall constitute a quorum for the transaction of 
business, except that— 
(A) if there are only 3 members serving on 
the Commission because of vacancies on the 
Commission, 2 members of the Commission 
shall constitute a quorum for the transaction of 
business; and 
(B) if there are only 2 members serving on 
the Commission because of vacancies on the 
Commission, 2 members shall constitute a 
quorum for the 6-month period (or the 1-year 
period, if the 2 members are not affiliated with 
the same political party) beginning on the date 
of the vacancy which caused the number of 
Commissioners to decline to 2. 
(3) SEAL.—The Commission shall have an offi-
cial seal, of which judicial notice shall be taken. 
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(4) VICE
CHAIRPERSON.—The Commission 
shall annually elect a Vice Chairperson to act in the 
absence or disability of the Chairperson or in case 
of a vacancy in the office of the Chairperson. 
(e) OFFICES.—The Commission shall maintain a 
principal office and such field offices as it determines nec-
essary, and may meet and exercise any of its powers at 
any other place. 
(f) FUNCTIONS OF CHAIRPERSON; REQUEST FOR AP-
PROPRIATIONS.— 
(1) DUTIES.—The Chairperson shall be the 
principal executive officer of the Commission, and 
shall exercise all of the executive and administrative 
functions of the Commission, including functions of 
the Commission with respect to— 
(A) the appointment and supervision of 
personnel employed by the Commission (and the 
Commission shall fix their compensation at a 
level comparable to that for employees of the 
Securities and Exchange Commission); 
(B) the distribution of business among per-
sonnel appointed and supervised by the Chair-
person and among administrative units of the 
Commission; and 
(C) the use and expenditure of funds. 
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(2) GOVERNANCE.—In carrying out any of the 
functions of the Chairperson under this subsection, 
the Chairperson shall be governed by general policies 
of the Commission and by such regulatory decisions, 
findings, and determinations as the Commission 
may, by law, be authorized to make. 
(3) REQUESTS
FOR
APPROPRIATIONS.—Re-
quests or estimates for regular, supplemental, or de-
ficiency appropriations on behalf of the Commission 
may not be submitted by the Chairperson without 
the prior approval of a majority vote of the Commis-
sion. 
(g) AGENDA AND PRIORITIES; ESTABLISHMENT AND 
COMMENTS.—Not later than 30 days before the beginning 
of each fiscal year, the Commission shall establish an 
agenda for Commission action under its jurisdiction and, 
to the extent feasible, shall establish priorities for such 
actions. Before establishing such agenda and priorities, 
the Commission shall conduct a public hearing on the 
agenda and priorities, and shall provide reasonable oppor-
tunity for the submission of comments. 
SEC. 5. OBJECTIVES AND RESPONSIBILITIES. 
(a) OBJECTIVES.—The objectives of the Commission 
are— 
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(1) to minimize unreasonable consumer risk as-
sociated with buying and using consumer financial 
products; 
(2) to prevent and eliminate practices that lead 
consumers to incur unreasonable, inappropriate, or 
excessive debt, or make it difficult for consumers to 
repay existing debt, including practices or product 
features that are abusive, fraudulent, unfair, decep-
tive, predatory, anticompetitive, or otherwise incon-
sistent with consumer protection; 
(3) to promote practices that assist and encour-
age consumers to use credit and consumer financial 
products responsibly, avoid excessive debt, and avoid 
unnecessary or excessive charges derived from or as-
sociated with consumer financial products; 
(4) to ensure that providers of consumer finan-
cial products provide credit based on the ability of 
the consumer to repay the debt incurred; 
(5) to ensure that consumer credit history is 
maintained, reported, and used fairly and accurately; 
(6) to maintain strong privacy protections for 
consumer transactions, credit history, and other per-
sonal information associated with the use of con-
sumer financial products; 
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(7) to collect, investigate, resolve, and inform 
the public about consumer complaints regarding con-
sumer financial products; 
(8) to ensure a fair resolution of consumer dis-
putes regarding consumer financial products; and 
(9) to take such other steps as are reasonable 
to protect users of consumer financial products. 
(b) RESPONSIBILITIES.—The Commission shall— 
(1) promulgate consumer financial product 
safety rules that— 
(A) ban abusive, fraudulent, unfair, decep-
tive, predatory, anticompetitive, or otherwise 
anticonsumer practices, products, or product 
features; 
(B) place reasonable restrictions on con-
sumer financial products, practices, or product 
features to reduce the likelihood that they may 
be provided in a manner that is inconsistent 
with the objectives specified in subsection (a); 
and 
(C) establish requirements for such clear 
and adequate warnings or other information, 
and the form and manner of delivery of such 
warnings or other information, as may be ap-
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propriate to advance the objectives specified in 
subsection (a); 
(2) establish and maintain a best practices 
guide for all providers of consumer financial prod-
ucts; 
(3) conduct such continuing studies and inves-
tigations of consumer financial products industry 
practices as it determines necessary; 
(4) award grants or enter into contracts for the 
conduct of such studies and investigations with any 
person (including a governmental entity), as nec-
essary to advance the objectives specified in sub-
section (a); 
(5) following publication of a rule, assist public 
and private organizations or groups of consumer fi-
nancial product providers, administratively and tech-
nically, in the development of safety standards or 
guidelines that would assist such providers in com-
plying with such rule; 
(6) comment on selected rulemakings of agen-
cies designated in section 6(d) affecting consumer fi-
nancial products; and 
(7) establish and operate a consumer financial 
product customer hotline which consumers can call 
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to register complaints and receive information on 
how to combat anticonsumer products or practices. 
(c) STATE REGULATION OF THE BUSINESS OF IN-
SURANCE.—The Act entitled ‘‘An Act to express the intent 
of Congress with reference to the regulation of the busi-
ness of insurance’’ and approved March 9, 1945 (15 
U.S.C. 1011 et seq.) (commonly referred to as the 
‘‘McCarran-Ferguson Act’’) remains the law of the United 
States. 
SEC. 6. COORDINATION OF ENFORCEMENT. 
(a) IN GENERAL.—Notwithstanding any concurrent 
or similar authority of any other agency, the Commission 
shall enforce the requirements of this Act. 
(b) RULE OF CONSTRUCTION.—The authority grant-
ed to the Commission to make and enforce rules under 
this Act shall not be construed to impair the authority 
of any other Federal department or agency to make and 
enforce rules under any other provision of law, provided 
that any portion of any rule promulgated by any other 
such department or agency that conflicts with a rule pro-
mulgated by the Commission and that is less protective 
of consumers than the rule promulgated by the Commis-
sion shall be superseded by the rule promulgated by the 
Commission, to the extent of the conflict. Any portion of 
any rule promulgated by any other such department or 
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