Financial Reform.

Are you as puzzled as I am? Let me explain my dilemma.

There is a significant push in Washington to establish a Consumer Protection Agency. Although there are many cites, I will give you a single example often cited to support the need for a Consumer Protection Agency. According to several prominent Congresspersons, it is needed to protect us from the wicked banks among other large out- of-control institutions - federal government excluded.

Congressman Barney Frank correctly points out that the latest credit card legislation is inadequate. For example, overdraft fees are a large source of bank revenue. And banks have still retained the right to reconcile your checking account by debiting the largest checks first then debiting the smaller checks. This policy increases the possible number of bounced checks hence increasing your overdraft fees. The new credit card legislation passed by our Congress and the Senate and signed by the President failed to seal this loophole. Congressman Frank did not address the issue of why this loophole, obviously recognized by persons of interest, was not closed with the much touted “sweeping credit card legislation.”

Congressman Frank and others believe a Consumer protection Agency would solve this problem. The Consumer Protection Agency would make sure that legislation is passed that closed these kind of loopholes that are adverse to consumers. Consumers are citizens like you and me.

Do you now understand why I am puzzled?

I thought we already had a Consumer Protection Agency. It is called the senate and the congress.

And what is more we have a director of the Consumer Protection Agency. He is called the President. I for one do not believe we need another Consumer Protection Agency, but we may need new management of the one we have.

By the way, there are more than 5,000,000 Google search returns related to consumer protection agencies. They must have missed reading the credit card legislation too. I wonder who read it. Do you think the banks might have?

See my earlier blog for the rest of the story on the credit card legislation.