Rare Victory for Consumers--Financial Reform Bill Approved by the Senate
Today, the Senate voted to move forward with the Dodd-Frank Wall Street Reform and Consumer Protection Act, 60-38. The bill is now on the way to the President to be signed into law.
Today's vote is a victory for consumers. The legislation came about despite the enormous opposition from the financial industry, which spent $1.4 million a day to kill the bill.
The bill creates the Consumer Financial Protection Bureau to guard against unfair, deceptive and abusive practices. Consumers will have a single agency that will put consumers' wellbeing first. The Consumer Financial Protection Bureau will write and enforce rules regarding mortgages, credit cards, financial loans (including student loans and payday loans), debt collection, and consumer reporting agencies.
The law will require companies that deny credit or insurance or take any other adverse action against a consumer based on the consumer's credit score to disclose the credit score used. In most cases, people turned down for credit will see their FICO score.
