Consumer Financial Protection Agency Proposal Under Debate
After getting sidelined by heath care reform debates and a multi-million dollar lobbying effort by the U.S. Chamber of Commerce, President Obama's proposal for a Consumer Financial Protection Agency has returned to lawmakers' desks. In his weekly media address, Obama encouraged lawmakers to act quickly on new legislation designed to rein in what he called "the worst practices of the financial industry." The proposal also includes language that would call for some credit card issuers and mortgage lenders to pay back taxpayers for bailing out past industry failures.

Credit card issuers have already endured major changes to their industry in the wake of 2009's Credit CARD Act. While that law's rules won't fully be implemented until later this summer, consumer protection advocates have championed an independent CFPA as a resource to prevent future financial bubbles at the expense of working Americans. Critics of the proposal contest the need for an additional watchdog agency, or for special powers that could interfere with the free market's ability to serve both borrowers and lenders.

About the Author


Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.