Alabama State Bar Urges Support for Exemption from Consumer Financial Protection Act

ASB President Thomas J. Methvin has written to U.S. senators Jeff Sessions and Richard Shelby as part of a nationwide campaign by bar associations to convince the U.S. Senate to amend the Consumer Financial Protection Act to exempt lawyers from the regulatory powers that would be granted by the new Bureau of Consumer Financial Protection within the Federal Reserve.

In his letter, Methvin said, ". . . As proposed, the Bureau would be allowed to impose burdensome new federal regulations on lawyers who help consumer clients to modify or settle their debts or avoid foreclosure. Moreover, the bill will adversely affect Alabama bankruptcy lawyers, tax lawyers, real estate lawyers, litigators, and general practitioners and their ability to properly represent the consumer clients."

The ASB contends the bill would permit the new agency to regulate anyone who provides consumer financial services, including attorneys. It has the potential to interfere with the confidentiality of the attorney-client relationship, undermine state court regulation of the bar and discourage lawyers from representing certain consumer clients. A House of Representatives version of the bill (H.R. 3126) contains a broad exemption for lawyers engaged in the practice of law.

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