Consumer Advocates Tout Financial Protection Agency

By Bob Smith

Rochester, NY – Consumer advocates across New York State are lining up behind a bill now making its way through the United States Senate, to enhance consumer protection in the financial services industry.

Attorney Ruhi Maker of the Empire Justice Center says the bill, if adopted, would create a new consumer protection agency within the Federal government to police the operations of lenders and help prevent abuse -- something she says last year's financial meltdown should have triggered long before now.

"There are in fact approximately seven different regulatory agencies. But their main job is the safety and soundness of the banking industry. Their main job isn't too look after consumers, and to look take consumer protection. So what happens is that they say 'OK, we're going to do one, two and three to make the banks sound'. Four, five and six that might be needed to make consumers safe in fact did not happen in the last few years."

Maker's colleague in the center's Albany office, attorney Kirsten Keefe, says the Senate bill will also offer a wider range of protection for individual investors and home buyers, as well as protection against abuses by sub-prime lenders and small loan outlets, if Congress enacts it without substantial changes.