Because bad consumer loans in sectors such as mortgages and credit cards are what got the country into its current tenuous financial state, government officials have spent months trying to correct these mistakes.
Many consumers may have questions about what mechanisms have been introduced and how they provide more protection against troublesome practices from lenders. Fortunately, the Associated Press published a report designed to answer some of them. Many, for example, may be wondering how the legislation protects consumers from. Federal regulators can now write and enforce rules for financial services and products, and will do so with the consumers’ best interests in mind.
Financial institutions will be prevented from costly or dangerous practices by a new layer of oversight, the report said. All institutions will be monitored by a consumer agency in addition to the existing governmental oversight. Many financial companies were not previously monitored and may have caused some to run up excessive credit card debt.
A Reuters report said that both the House and Senate will form watchdog groups to monitor all mortgage and credit card lenders and help regulate their actions, though there has been some debate over who will have authority over these groups.