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U.S. Rep. David Scott, D-GA, has introduced legislation that he says will play a vital role in strengthening financial education resources and “help improve the overall financial health and well-being” of families across Georgia, and especially in his home district.
Scott, who is metro Atlanta’s longest-serving congressional representative after being re-elected to serve his 11th term this past Tuesday, introduced H.R. 9272, the Consumer Financial Education and Empowerment Act this week. Scott, the Chairman of the House Agriculture Committee, says that through this bipartisan legislation he is committed to providing consumers with the necessary resources to achieve their financial goals and generate economic stability.
“Today, far too many Americans struggle with decisions around financial planning, saving, and investing. This lack of basic financial education often leaves consumers vulnerable to potentially avoidable financial pitfalls,” said Scott. “My bill will allocate vital financial education resources, thus allowing consumers to make better informed decisions regarding their personal finances while improving the overall financial health and well-being of their families.”
The bill has been endorsed by a number of associations and stakeholders including the Association for Financial Counseling & Planning Education (AFCPE), Local Initiatives Support Corporation (LISC), Credit Builders Alliance (CBA), National Association for Latino Community Asset Builders (NALCAB), National Disability Institute (NDI), National Endowment for Financial Education (NEFE), National NeighborWorks Association, and Operation Hope
According to Scott, the Consumer Financial Education and Empowerment Act would allow for a portion of the Consumer Financial Protection Bureau (CFPB) Civil Penalty Fund to be used for financial education programs in schools, libraries, non-profits, and other similar organizations. This includes programs designed to educate consumers about important topics like preparing for homeownership, savings accounts, retirement, tax planning, and starting a business with a proven record of success.
He went on to say that funds would provide for both the instruction of financial education, as well as the instruction of financial education trainers.
“On behalf of our 611 members, the Credit Builders Alliance applauds the introduction of the Consumer Financial Education and Empowerment Act that builds on proven statewide models,” said Dara Duguay, CEO of Credit Builders Alliance. “By using a small percentage of the Consumer Financial Protection Bureau’s Civil Penalty Fund, we can directly support the delivery of high-quality financial counseling and guidance to individuals and families, we can ensure help to empower more consumers with the resources and tools that foster financial stability.
Rachael DeLeon, Executive Director of the Association for Financial Counseling & Planning Education (AFCPE) also spoke in support of the bill. “We applaud the reintroduction of the Consumer Financial Education and Empowerment Act. Passing this bill would allow the CFPB to provide funding to qualified nonprofit organizations to build and maintain high-quality financial counseling and education programming.
“Financial counselors, like AFC professionals, can help Americans overcome a financial crisis; get out of debt; grow savings; navigate a major life change; avoid foreclosure; and build a sound financial foundation for long-term financial wellbeing. This bill is an important step in stabilizing, supporting, and sustaining the economic stability of millions of Americans.”
