Consumer Law

Obama's Proposed Consumer Financial Protection Agency

By Kemnitzer, Anderson, Barron, Ogilvie & Brewer

A few days ago, the White House sent Congress a bill to create a Consumer Financial Protection Agency (CFPA). Everyone who favors consumer protection should support this bill. Georgetown University Law School Professor Adam Levitin argued the case for the creation of the CFPA in the "Credit Slips" blog that covers credit and bankruptcy. He states we need the CFPA because the current regulatory structure doesn?t work and it will almost inevitably cause future crises, if not of the scale of the current one, then still too serious to countenance.

Prof Levitin points out that the economic disaster of 2008 is the chief exhibit in showing that the current system doesn't work. There were many factors behind the economic disaster, but bad consumer credit products were an important factor. A major lesson from this crisis is that consumer debt can affect global economic stability (no surprise as consumer spending is something like 70% of GDP).
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Full post as published by California Credit Law Blog on July 03, 2009 (boomark / email).