"Efforts like these of the California DFPI and other states, will have unintended consequences that disrupt interstate commerce, increase the cost of financial products and services, limit consumer choice and negatively impact competition." said Marsha Jones, President of the TPPPA.
WASHINGTON (PRWEB) September 23, 2021
The Third Party Payment Processors Association ("TPPPA"), an industry trade association representing payment processors and banks in the third-party payment processing industry, submitted its response to two proposed rules of the State of California's Department of Financial Protection and Innovation's ("DFPI") which implement parts of the California Consumer Financial Protection Law ("CCFPL") that became law in September of 2020.
In its response, the TPPPA expressed concern over the promulgation of state specific rules that create new, comprehensive, and costly requirements to those companies that provide financial products and services to state residents. The TPPPA warned of the consequences of efforts like these which impose new requirements that are inconsistent with, or in outright conflict with the federal legal and regulatory framework that governs payments and promotes interstate commerce over the internet.
"Efforts like these of the California DFPI and other states, will have unintended consequences that disrupt interstate commerce, increase the cost of financial products and services, limit consumer choice and negatively impact competition," said Marsha Jones, President of the TPPPA.
The TPPPA urged the California DFPI to consider the potential impact and costs of its efforts on its own consumers and businesses when other states do the same. This includes:
- The loss of California small businesses that can no longer bear the cost of compliance and the need to program and staff for numerous sets of different rules.
- The impact to California consumers who will be forced to acquire financial products and services from larger companies that do not provide the same level of customer service and generally charge higher prices.
- The potential that companies outside California will discontinue offering their products and services to California consumers, due to cost of compliance with these ever-increasing rules, thereby restricting the choice of consumers by reducing options for financial products and services that work for them.