House Financial Services Committee Chairman Barney Frank introduced legislation late Wednesday that largely tracks the Obama administration's plan to remove the consumer protection functions from the banking agencies and the Federal Trade Commission and consolidate them in a new, independent agency.

The Consumer Financial Protection Agency would set minimum federal standards that states could also enforce. States could set tougher standards that would apply to all institutions, including national banks. The agency also would have authority over non-bank financial providers like payday lenders. It would have broad rule-writing authority to protect consumers from abuse, deception and discrimination.

Like the administration, Frank would shift enforcement of the Truth-in-Lending Act and the Real Estate Settlement Procedures Act to the new agency. But the Massachusetts Democrat would retain enforcement of the Community Reinvestment Act with the banking regulators.

Frank is aiming to hold a committee vote on the bill by the end of July.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.