December 11, 2009
WASHINGTON, D.C. — Jim Guest, the president of Consumers Union, the nonprofit publisher of Consumer Reports magazine, today praised the House vote in favor of financial regulatory reform legislation, which includes the creation of a Consumer Financial Protection Agency.
Consumers Union has long advocated for such an agency to act as a watchdog to protect consumers from abusive and unscrupulous practices in the banking and lending industries.
“This agency would go a long way toward stopping the deceptive practices that helped spark the economic crisis a year ago,” Guest said. “We need an aggressive watchdog in Washington that looks out for the best interests of consumers. This agency would crack down on lenders and banks that abuse their customers, and it would provide information consumers need to make informed financial decisions. The House vote is a big victory for consumers, and it gives us momentum as the debate shifts to the Senate.”
The House approved the financial reform bill by a vote of 223-202. Consumers Union urged the Senate to move quickly to approve similar legislation.
In addition to the creation of the Consumer Financial Protection Agency, the House bill includes CU-backed reforms to require financial institutions to meet stronger capital requirements, promote more active regulatory oversight of banks and other financial institutions, provide enhanced investor protection, and establish a specific federal regulator to determine when companies or practices could pose a risk to the financial system.
David Butler or Kristina Edmunson, 202-462-6262; Michael McCauley, 415-431-6747