November 11 2009|01.00 PM UTC

Angelica Nierras

More Consumer Protection on the Way: The Creation of the Consumer Financial Protection Agency

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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

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{ 1 comment… read it below or add one }

JP November 11, 2009 at 3:42 pm

In a free market, individuals are able to do business with whatever company they wish and companies compete with one another for that business. If the consumer doesn’t like the product or behavior of that company, he/she can go elsewhere.

However, in an economic system in which the government insures large companies from bankruptcy, executives at these quasi-government companies are too eager to take bizarre risks at taxpayer expense.

We need to start practicing laissez-faire capitalism instead of this mixed system in which companies lobby for protection and favors in exchange for politicians (who are usually skilled at smooth-talking and not much else) having say in their business.

We need to start protecting INDIVIDUAL rights instead of the “right” of one group to vote another in to slavery.

The recent US government administrations are essentially trying to bankrupt the entire system so that a socialist dictatorship can be more easily sold on to the poverty stricken masses. They haven’t a clue about the needs of a successful economy and always blame the free-market for the results of their rules and regulations.

Please beware of the new chains on our freedoms that you’re advocating. Imagine giving government control over people’s lives when your party’s ideology is in power and then handing that power over to the opposing party’s ideology.

Thanks for reading my rant. I enjoy the “billshrink” articles, but I fear that if this government keeps making it hard to create wealth, there will be no more bills to shrink.

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