In an effort to prevent another financial disaster, President Obama agreed to the establishment of a Consumer Financial Protection Agency (CFPA). The idea is to combine responsibilities now tasked to seven different agencies and centralize them into one office that protects consumers of financial products.
Many banks and financial institutions operate under cover of complex terms and agreements, selling services and products their customers don’t understand. Determining which products or practices may be misleading, and making sure that all financial disclosures are clear and simple would be the job of this new agency. The agency will also uphold new rules requiring credit card companies to offer credit cards with fewer conditions and fees to the people who want them. Basically, their job is to prevent banks from taking advantage of the average American, balancing both sides of the lending equation.
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