The financial reform legislation passed in 2010 was written to help protect consumers in a variety of financial areas. These include limiting taxpayers’ liability if they use a financially unstable bank and preventing or stopping the spread of unfair, abusive, or deceptive financial practices.
As a result, a new, independent federal agency—the Consumer Financial Protection Bureau—was created. This is the first time that one federal agency will be responsible for financial consumer protection, and the CFPB will oversee financial products and services, including credit cards, mortgages, payday loans, private student loans, credit bureaus, and debt collection.
In addition, the CFPB will write rules to require that consumers are provided with complete and understandable information related to the costs, benefits, and risks of financial products. These include:
• Home loans
• Credit reports/scores
• Student loans
Consumers will have access to a complaint system with a toll-free phone number, a Web site and a database that will capture other consumer complaints of questionable providers and products.
For more information, visit http://www.federalreserveeducation.org
Managing Your Money: Using Credit Wisely