A new page in Fed’s bid to protect consumers
The Federal Reserve Board this week posted a new Web page providing succinct information for consumers on what gift-card issuers can and can’t do. Those rules are based on the new Credit CARD Act of 2009, and are effective after August 22 of this year. Check it out for a simple primer on your consumer rights. As we’ve mentioned, the Fed’s new rules don’t go far enough, but are an improvement over what existed before.
As the financial reform battle heats up in Congress, expect to hear more discussion of the Fed’s role in protecting—or not protecting—consumers during the last few years’ financial fiasco. The Fed’s defenders, and those who fear the creation of an independent Consumer Financial Protection Agency, argue that the Fed is perfectly capable of meeting its mandate for consumer protection. The Senate bill currently under consideration proposes a Consumer Financial Protection Board, under the aegis of the Federal Reserve.
But as we’ve reported, in spite of its mandate to protect consumers, the Fed’s record is hardly stellar. Opponents of a board within the Fed, including Consumers Union, publisher of Consumer Reports; the Consumer Federation of America; and numerous other consumer organizations, maintain that the current system, in which the Fed shares consumer-protection responsibility with several other authorities, has been disastrous for consumers. And, they maintain, an independent CFPA, outside Fed or any other agency, is the only way to truly ensure consumers’ rights are protected.—Tobie Stanger
Similar Posts:
- Free FICO Scores on the Horizon
- Fed’s Hoenig: Rates Should Have Risen By Now
- Fortescue has 716Mt reserve at Solomon
- Let’s not foreclose on financial reform | Beth Wellington
- Wall Street and Republican lawmakers thwart US financial reforms
Recent Comments