Consumer Financial Services Watch

News and developments related to consumer financial services, litigation, and enforcement.

 

1
Singularity of Purpose: Is Looking Out for Consumers Too Narrow a Mission?
2
Fifty Ways to Need a Lawyer: Congress Proposes to Establish Financial Services Watchdog Agency
3
No posts on Personal Property Financing yet. Check back soon.

Singularity of Purpose: Is Looking Out for Consumers Too Narrow a Mission?

By: Melanie Hibbs Brody, Stephanie C. Robinson

No one doubts that consumers have been hurt by the global financial crisis and a better federal and state regulatory regime could lessen the likelihood of future harm in the consumer credit arena. The question is how best to accomplish that objective? Is it simply a matter of better funding of the enforcement of existing laws? Is it prudent to impose new substantive obligations on providers of consumer financial products and services? Do we need to shuffle the boxes out of which regulators operate to ensure a better-coordinated approach to government regulation and enforcement?

At a press conference on June 17, 2009, President Obama laid much of the blame for the financial crisis on gaps in financial regulation. To fill in those gaps, the President unveiled his proposed financial regulatory reform package—a white paper entitled A New Foundation: Rebuilding Financial Supervision and Regulation. Among many recommendations for significant change, the reform package recommends the creation of a new federal agency with the singular job of, in the words of Mr. Obama, “looking out for consumers.” The new Consumer Financial Protection Agency (CFPA) would be designed to protect consumers in the financial products and services markets, and would be the primary federal consumer protection supervisor.

To read the complete alert online, click here.

 

Fifty Ways to Need a Lawyer: Congress Proposes to Establish Financial Services Watchdog Agency

By: Melanie Hibbs Brody, Stephanie C. Robinson

Advocates for the creation of a new federal financial regulatory body claim that consumer loans and toasters have something in common—both are useful and convenient, but either one could explode in your face. In an effort to protect consumers against the risks associated with risky financial products—particularly the types that contributed to the country’s current foreclosure crisis—Senators Richard Durbin (D-IL), Chuck Schumer (D-NY), and Ted Kennedy (D-MA), and Congressmen Bill Delahunt (D-MA) and Brad Miller (D-NC) recently introduced legislation (S.566 and a companion bill, H.R. 1705) that would create the Financial Products Safety Commission (the “FPSC” or the “Commission”), a federal financial regulatory body designed to protect users of consumer financial products and services from unreasonable risk. 

To read the complete alert online, click here.

Copyright © 2019, K&L Gates LLP. All Rights Reserved.