Rep. Stivers: Don’t Let Regulation Stifle Innovation (June 16, 2014)
Congressman Steve Stivers (R-Ohio) stressed the importance of the prepaid card industry continuing its work of getting to know federal rulemakers and explaining to them the value the industry’s products provide to consumers, businesses and state and local governments. The goal among regulators and legislators should be “thoughtful regulation and not knee-jerk regulation,” he said during the congressional keynote address at the NBPCA’s Power of Prepaid conference in Washington, D.C., last week.
The prepaid industry is “clearly the payment vehicle of choice for many consumers and businesses. There’s a lot going on in your space right now—a lot of innovation, but there’s also a lot of regulatory scrutiny,” said Stivers, who is a member of the House Financial Services Committee and co-chair of the Financial Literacy Caucus.
The relevance of his comments were undeniable as just days earlier Richard Cordray, director of the Consumer Financial Protection Bureau, told members of the Senate Banking Committee that his agency plans to release its proposed rule on prepaid cards at the end of the summer.
“Get to know your legislators and tell your story because that way when [legislation or rules are introduced], you will have people who already are familiar with you and they can get involved,” Stivers said, acknowledging and commending the industry for having already cooperated with the CFPB.
“I am really concerned about regulators who think they know better than consumers what works for consumers,” he said. “The dramatic and dynamic growth in your industry proves that consumers want your product and we need to make sure [regulators] don’t kill that growth and innovation.”
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