Finally, Financial Rules to Help Consumers

I read some pleasing news today in The New York Times® regarding new financial rules to protect the general populous; yes people like you and me.  Here were some key points of this new Congressional Bill:

  • A new agency to be formed called Consumer Financial Protection Bureau, housed in the Federal Reserve lead by a director appointed by the President and confirmed by the Senate – sole duty is to look out for the consumer
  • Under the new Consumer Financial Protection Bureau:
  1. Write & enforce new rules for most banks, mortgage lenders, credit card and private student loan companies & payday loan lenders with assets in access of $10 billion. (Smaller financial institutions will remain under current enforcement & supervision.)
  2. A FREE credit report can be obtained each year from for EACH of the main credit bureaus:  Equifax, Experian & TransUnion.   (I suggest you stagger them throughout the year.)
  3. Mortgages will see a ban on prepayment penalties for those with adjustable-rate & other complex mortgages.
  4. Days are over for mortgage brokers & bank employees to earn bonuses based on the type of loan they put you into; the incentive to increase bank profits by pushing high-interest rate mortgage days are numbered.
  5. Cash can be cheaper than purchases by credit card; all credit cards will be treated equal.

For more, see the entire New York Times article.  Is it time for financial reform and protection for the consumer?


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