Consumer Protection Bureau a Good Thing?

Posted On: July 20, 2010 at 10:32 a.m.

Filed Under: consumer protection bureau payday loans

You and I are both consumers. Over the span of our lives, we see all kinds of financial changes and we must make all kinds of choices. Making decisions about mortgages, car loans, and even payday loans is not easy. And, with unfortunate predatory lending out there, it is easy to fall into a trap by companies who try to weasel their way into our pocket books. So, as the Federal Government looks to implement a new consumer protection bureau, I want to ask—do you think it is a good thing, or should things continue as they are. Here is a brief article about what some of the things the bureau would do: ““There are whole armies of lawyers and financial advisers working right now to engineer financial products that fit within those exemptions,” said Lawless, a regular contributor to Credit Slips, a blog that focuses on credit and bankruptcy issues. [[ads]] He says the bill’s other key plank for consumers is a proposed Bureau of Consumer Protection, an independent regulator housed within the Federal Reserve that would consolidate oversight of a wide variety of financial products, including mortgages, credit cards and payday loans. The bureau would give consumers a designated watchdog to protect their interests, leading to easier-to-understand contracts for mortgages and credit cards, clearer billing statements and other consumer-friendly moves to prevent lenders from taking unfair advantage of borrowers. Lawless says the bureau also could respond more quickly than Congress if the financial industry develops new products or strategies that shortchange consumers, reacting in weeks or months rather than years” (http://www.rdmag.com/News/Feeds/2010/07/general-sciences-financial-reform-a-mixed-bag-for-consumers-u-of-i/). It is not easy to regulate financial products, but if it could eliminate the predators, it might be a good thing. What do you think?