While Attorney General Lisa Madigan may have decided against running for U.S. Senate, she is still doing her part to help the upper chamber's chief anti-usury advocate, Dick Durbin.

Yesterday, Madigan joined attorneys general from 23 other states in urging members of Congress to support Durbin's bill to establish a Consumer Financial Protection Agency (CFPA).  This proposed body would be tasked with shielding American consumers from unscrupulous lending practices. Under the current regulatory system -- where bank regulators set loose rules that allow large financial institutions to circumvent stricter state laws -- attorneys general have been limited in their ability to crack down on predatory practices such as exborbitant interest loans and credit card fees (a problem Madigan discussed in testimony before the House this past spring). The CFPA would theoretically change that by giving local authorities the power to enforce more stringent regulations. In a letter to the House and Senate banking committees (which have been sitting on the legislation since July), the attorneys general explain the significance:

“[T]his legislation recognizes the key role that state Attorneys General serve in spotting new frauds and abuses, responding to citizen concerns, and enforcing state laws. The preservation of our role is critical to fighting fraud in the financial marketplace and a crucial factor in our support of this legislation."

In adding her support, Madigan joins Illinois consumer protection advocates who have been lobbying hard for the agency's creation. The attorney general explains her support for the agency in a statement:

“The current financial crisis has demonstrated the need for comprehensive and effective consumer protection oversight and enforcement at the federal level,” Madigan said. “The creation of an independent federal regulator is essential for helping to root out unfair and deceptive practices by the financial services industry."

Read the full letter below (click the button in the upper right-hand corner to expand):