ILNews

IBA Issues Response to Proposed Lawyer Regulation

Back to TopCommentsE-mailPrint

As the United States Senate began debate on the proposed Consumer Financial Protection Act (“CFPA”), the Indianapolis Bar Association issued a letter to oppose provisions within the CFPA which would grant the proposed Bureau of Consumer Financial Protection broad new powers to regulate lawyers. Signed by IBA President Chris Hickey, the letter notes several concerns.

“These provisions will allow the Bureau to regulate and interfere with core aspects of the confidential attorney-client relationship, including the legal advice and other important legal services that lawyers routinely provide to their consumer clients,” wrote the IBA.

The letter added, “These provisions will also undermine traditional state court regulation of lawyers and will result in new federal rules that are inconsistent with the state courts’ longstanding ethical rules and standards governing lawyers.”

It also asserted that “allowing the Bureau to fully regulate lawyers just as if they were non-bank financial institutions will discourage many lawyers from providing the legal services that consumer clients need to save their homes from foreclosure, resolve their debt problems, or avoid bankruptcy.”

To avoid these problems, the IBA urged support of the “Exclusion for the Practice of Law” proposed by the American Bar Association, which is almost identical to the amendment previously crafted by leaders of the House Judiciary and Financial Services Committees and incorporated into the House-passed financial overhaul bill, H.R. 4173.

The IBA noted, “Unlike the narrow ‘Exclusion for Attorneys’ provision currently contained in Section 1027(e) of the Senate bill, the proposed amendment would protect consumers while preserving the confidential attorney-client relationship, traditional state court regulation and supervision of lawyers, and the continued availability of quality legal services that consumer clients need.”

The letter was sent to Indiana’s U.S. Senators Richard Lugar and Evan Bayh, as well as U.S. Senate Committee on Banking, Housing & Urban Affairs Chairman Senator Chris Dodd and Ranking Member Senator Richard Shelby.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

  2. As a lawyer who grew up in Fort Wayne (but went to a real law school), it is not that hard to find a mentor in the legal community without your school's assistance. One does not need to pay tens of thousands of dollars to go to an unaccredited legal diploma mill to get a mentor. Having a mentor means precisely nothing if you cannot get a job upon graduation, and considering that the legal job market is utterly terrible, these students from Indiana Tech are going to be adrift after graduation.

  3. 700,000 to 800,000 Americans are arrested for marijuana possession each year in the US. Do we need a new justice center if we decriminalize marijuana by having the City Council enact a $100 fine for marijuana possession and have the money go towards road repair?

  4. I am sorry to hear this.

  5. I tried a case in Judge Barker's court many years ago and I recall it vividly as a highlight of my career. I don't get in federal court very often but found myself back there again last Summer. We had both aged a bit but I must say she was just as I had remembered her. Authoritative, organized and yes, human ...with a good sense of humor. I also appreciated that even though we were dealing with difficult criminal cases, she treated my clients with dignity and understanding. My clients certainly respected her. Thanks for this nice article. Congratulations to Judge Barker for reaching another milestone in a remarkable career.

ADVERTISEMENT