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:
- 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.)
- A FREE credit report can be obtained each year from AnnualCreditReport.com for EACH of the main credit bureaus: Equifax, Experian & TransUnion. (I suggest you stagger them throughout the year.)
- Mortgages will see a ban on prepayment penalties for those with adjustable-rate & other complex mortgages.
- 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.
- 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?