| Our current financial crisis has spawned an | | | | regarding credit cards and other financial services |
| astounding amount of state and federal legislation | | | | products as well as the pursuit of sweeping |
| aimed squarely at the financial services industry. | | | | changes to the short-term lending industry. But |
| Legislators are determined to prevent us from | | | | many feel that the agency's power will be too |
| making the same mistakes twice, and are vowing | | | | broad. And with a growing list of exemptions and |
| to protect consumers from what they refer to | | | | loopholes, is this new agency truly protecting the |
| as "predatory lending". But how far should these | | | | consumer or will it cater to special interest |
| new policies reach? At what point do we consider | | | | groups? |
| that government regulation has overstepped the | | | | Short Term Lending Changes |
| boundaries of private business? | | | | A major focus of the CFPA will be the continued |
| It seems that legislators have tried to tackle all of | | | | regulation and possible elimination of the payday |
| the financial sector issues at once. From Big bank | | | | lending industry. This type of short term lending is |
| bailouts, to corporate compensation, to an all out | | | | considered to be "abusive" and "predatory" by |
| assault on short term lending. No doubt that many | | | | many lawmakers and has been cited as a key |
| of these areas need further regulation and | | | | reason Congress needs to create a separate |
| intervention, but it's important that we write laws | | | | watchdog for consumer financial products. |
| that make sense for consumers as well as the | | | | Additionally, attention is shifting to the regulation |
| entities that serve them. The general public will | | | | of bank overdraft fees and other financial |
| continue to need access to credit and it is | | | | industry charges. |
| imperative that we write smart policies that | | | | The current financial crisis makes it easy to see |
| encourage responsible lending to responsible | | | | that we are in need of substantial industry |
| individuals. | | | | reform. It will take our best financial minds to |
| Consumer Financial Protection Agency (CFPA) | | | | devise long-term solutions for our current issues. |
| In October we saw this proposed agency clear a | | | | The only workable fixes are those that create a |
| major hurdle. Its passage through the US House | | | | fair marketplace for both financial institutions and |
| of Representatives moves it one step closer to | | | | consumers. Above all, lawmakers must focus on |
| becoming the agency that will take financial sector | | | | the passage of regulations that get credit into the |
| reform head-on. It will be responsible for rules | | | | hands of people and organizations that need it. |