Congress Begins to Overhaul Consumer Protections

On July 16th, 2009 NPR reported a story about the first piece of Obama's plan to overhaul the current financial system through increasing consumer protections. Legislation drafts have already been sent to Congress that would change an important part of the plan. It would consolidate the financial protection agency for consumers and make the new rules regarding everything from credit cards and loans to mortgages.

Advocates of this change agree that it would put financial information in plain language that consumers could actually understand, which would prevent people from getting mortgages or loans that they actually do not need or are not right for them. The opposition however points to the fact that consumers have and always need to be saavy about the decisions they make. They think that it is their responsibility to research and find what they need to protect themselves.

Senator Bob Corker (R-TN) views the plan as too far-reaching and almost invasive by the government. He sees it as the government telling consumers what to buy and limiting banks and financial institutions from having a wide range of options.

Discussions on the issue will continue and there are strong proponents on both sides. Whatever the outcome of this proposed legislation is will clearly affect all Americans' financial degree of financial protection. This is precisely why it is important for any consumer to know what they face when they enter a bank in search of a loan or apply for a mortgage. Most people will get some sort of loan in their lifetime which is why having a bit of knowledge about the rules and workings of our financial system and banks is extremely important.

Reading this article and those to come regarding this issue will be helpful for Americans to assess the changes being made in the financial system and how they directly and indirectly affect them.