Americans may soon have a new independent agency to protect them from unfair and abusive financial products and services. The reason? To strengthen protection.
The consolidation of consumer protection power will cut across financial products such as mortgages, credit cards and more from a variety of financial firms. Several industries will fall under the new agency’s jurisdiction including payday lenders and mortgage originators.
Currently, the authority for consumer protection is spread across many agencies, and some financial firms slip under the radar. The new agency will have the power to write regulations and set guidelines so companies issue clear and fair disclosures. It will also watch for new financial products and services that could be harmful.
The Financial Services Committee approved today the legislation to establish the new agency. Now the bill makes its way through Congress. Look for changes soon.