It turns out that the Credit CARD Act of 2009 – a series of reforms in the credit card industry aimed at eliminating or mitigating unfair and abusive practices – was only the initial salvo of a legislative campaign aimed at benefiting consumers.
At this point in the economic recession, just about everyone agrees that our financial regulatory system needs a serious overhaul. President Obama is taking an important step with the creation of a new consumer protection agency — the Consumer Financial Protection Agency (CFPA) — that will be the cornerstone of financial reform.
The proposed agency’s powers and oversight would extend to home mortgages, credit cards, consumer loans, and other consumer credit services. The agency’s first charter would be to create consumer-friendly, uniform disclosure to all home purchase and financing transactions, like ‘good-faith’ estimates and truth-in-lending statements.
The proposed CFPA puts consumer concerns front and center, rather than as a tangential issue. Designed to rule credit and loan institutions, the agency would be a toothier watchdog for financial institutions who are long accustomed to cozy relationships with the institutions meant to regulate them. Such cozy relationships are a big part of our current financial predicament, and the whole reason Obama and Representative Barney Frank (D-MA) are such major proponents of the agency.
BillShrink fully supports the creation of the CFPA. After all, we’re a company dedicated to saving people money by providing apples-to-apples comparisons on costs of their everyday bills.
Bottom line: In the everlasting conflict between big business Goliath and the little David, it’s about time David got some backup.
photo credit: amycgx