President Obama recently suggested to congress the formation of a Consumer Financial Protection Agency (CFPA). The details of the formation and duties of this Consumer Financial Protection Agency are outlined in a 152-page draft bill that will be considered by the House Financial Services Committee and Senate Banking Committee later this month. According to the draft bill, The Consumer Financial Protection Agency would be in charge of overseeing mortgages, credit cards and payday loans. The agency would potentially require lenders to put a type of “Warning Label” on those mortgages which have payments that balloon in size after a few years. The proposal is receiving opposition from the banking industry as well as Senate Republicans who contend that this would ultimately limit options for consumers and lull them into a false sense of security.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

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