Tuesday, November 10, 2009
WASHINGTON, D.C. – Sen. Chris Dodd, the chairman of the Senate Banking Committee, today released a discussion draft for comprehensive financial reform legislation. The draft includes the creation of a Consumer Financial Protection Agency, an independent watchdog to crack down on abusive lending terms, hidden fees, and other tactics employed by some financial service providers. The agency would also work to make sure consumers face a fairer marketplace for home loans, credit cards, and other financial products.
Consumers Union has long advocated for a Consumer Financial Protection Agency, pointing to the recent financial crisis as fresh evidence of the urgent need for reform.
“This set of reforms will stop some of the worst abuses we’ve seen in the financial marketplace and create a strong system for the future,” said Gail Hillebrand, the director of Consumers Union’s financial reform campaign. “We need a Consumer Financial Protection Agency to protect Americans from the kind of deception and abuse that helped spark this economic crisis. We are pleased that Senator Dodd’s bill preserves the ability of states to protect their consumers regardless of the type of lender.”
The discussion draft also aims to protect against systemic risks by creating a method to identify risks posed by large, complicated companies and products before they inflict serious harm on consumers and the economy.
David Butler or Kristina Edmunson, Consumers Union, 202-462-6262
Michael McCauley, Consumers Union, 415-431-6747
Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.