Released: July 15, 2010

U.S. Senate stands with consumers on financial reform

Contact: Contact: Ruth Susswein: (301) 718 -2511 Linda Sherry (202) 544 -3088

The U.S. Senate put consumers first today upon passage of a comprehensive financial reform bill. After great debate and compromise, the U.S. Senate passed a financial reform package (60 to 39) that will strengthen consumer protection of financial products and services. The bill creates a consumer financial watchdog – the Consumer Financial Protection Bureau (CFPB) – charged with writing rules for credit cards, mortgages, debt collection, payday, and other loans. The CFPB will have an independent director and independent budget allowing it to prevent the spread of unfair and deceptive practices. “Consumers will now have one regulator whose only job is consumer financial protection,” said Consumer Action’s Deputy Director National Priorities Ruth Susswein. “This new watchdog has enormous potential to change people’s lives in tangible ways by spotting and banning abusive lending in home loans, credit cards, and other loans.” New financial protection safeguards will help consumers save money, avoid hidden ‘gotcha’ fees, and reduce risk to the financial system. The reform bill also includes: • New mortgage rules to protect home buyers • Oversight of student loans • Help for unemployed homeowners • Ability to limit future bailouts “Years of greedy, reckless lending left taxpayers with the job of having to clean up the financial industry’s mess. This financial reform bill is designed to curb hidden costs, ban predatory lending, and prevent unnecessary foreclosures,” said Susswein. “ Passage of this bill is a clear win for families and communities.” The President is expected to sign the reform bill into law next week.