Consumer Finance Tips

The Dodd-Frank or Wall Street Reform and Consumer Protection Act law covers consumer protection.

Parts of the law have yet to go into effect; many that involve consumers are not yet clearly set so it isn’t yet clear how the consumer will benefit.

Consumer education was a major consideration but the question is still how Dodd-Frank will do this. There are about 150 pages of the Act that explains the creation of the Consumer Finance Protection Board (CFPB).

The board's chief function involves financial educational programs, and collecting, investigating and responding to consumer complaints. It’s to research consumer financial markets that affect consumers.

Also included is the mortgage disclosure form from a combination of suggestions from the Real Estate Settlement Procedures Act and the Truth in Lending Act, and existing laws.

True, consumers need help. From my experience, too many consumers are ignorant of basic finance, including the role of interest costs.

But I cannot see how this can be accomplished by consumer-oriented documents alone. It can be taught in schools early on.

Creating more informed consumers cannot be practically accomplished by regulators. (See the Earl J Weinreb NewsHole® comments.)