Ellen Seidman, a senior vice president at ShoreBank Corp., cautioned the committee against establishing a regulatory system driven solely by consumer complaints.

"Bank regulators, given the proper guidance from Congress and the will to act, are fully capable of effectively enforcing consumer protection laws," she said. "Moreover, because of the system of prudential supervision, with its on-site examinations, they are also in an extremely good position to do so and to do it in a manner that benefits both consumers and the safety and soundness of the regulated institutions."