Congress has begun work on the president's proposal to create a new agency for protecting consumer savings, investments and borrowing. The Consumer Financial Protection Agency would oversee the practices and products of banks and other lenders with the goal of safeguarding consumers from fraud.

Anthony Carroll, AARP spokesman, says the agency's oversight would have a practical impact.

"What we don't have, and what we really need in the financial marketplace, is an agency whose sole focus, whose sole mission, is to protect consumers."

Creating this agency would be a good step forward, says Carroll, who cautions lawmakers writing the federal rules not to reduce the role states already play in enforcing consumer protection.

"We want to make sure we don't take a step backwards and do anything that would hurt enforcement or the strength of the current consumer protections that are in place in states."

Among those opposing the proposed bill are banks and auto dealers, who argue their lending practices already are regulated by the federal and state governments. Consumer groups rank predatory lending high among consumer complaints. Pennsylvania has two members on the House Financial Services Committee tackling the issue first; Democratic Rep. Paul Kanjorski and Repbulican Rep. Jim Gerlach.

 

Tom Joseph, Public News Service - PA