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IBA Issues Response to Proposed Lawyer Regulation

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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.•

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  1. Excellent initiative on the part of the AG. Thankfully someone takes action against predators taking advantage of people who have already been through the wringer. Well done!

  2. Conour will never turn these funds over to his defrauded clients. He tearfully told the court, and his daughters dutifully pledged in interviews, that his first priority is to repay every dime of the money he stole from his clients. Judge Young bought it, much to the chagrin of Conour’s victims. Why would Conour need the $2,262 anyway? Taxpayers are now supporting him, paying for his housing, utilities, food, healthcare, and clothing. If Conour puts the money anywhere but in the restitution fund, he’s proved, once again, what a con artist he continues to be and that he has never had any intention of repaying his clients. Judge Young will be proven wrong... again; Conour has no remorse and the Judge is one of the many conned.

  3. Pass Legislation to require guilty defendants to pay for the costs of lab work, etc as part of court costs...

  4. The fee increase would be livable except for the 11% increase in spending at the Disciplinary Commission. The Commission should be focused on true public harm rather than going on witch hunts against lawyers who dare to criticize judges.

  5. Marijuana is safer than alcohol. AT the time the 1937 Marijuana Tax Act was enacted all major pharmaceutical companies in the US sold marijuana products. 11 Presidents of the US have smoked marijuana. Smoking it does not increase the likelihood that you will get lung cancer. There are numerous reports of canabis oil killing many kinds of incurable cancer. (See Rick Simpson's Oil on the internet or facebook).

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