Consumer Protection and Regulatory Changes in the Dodd-Frank Bill

SUMMARY

On 21 July 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank" or "Act"). The Act is a wide-ranging set of financial reforms that make the largest change in financial regulation in decades. Among the most contentious provisions in the bill is the creation of the Bureau of Consumer Financial Protection (BCFP). The BCFP will consolidate consumer protection powers from a variety of agencies and will gain rulemaking and enforcement authority. This note will discuss key provisions of Dodd-Frank that pertain to the consumer finance industry.

Among the most important provisions of the Act is the consolidation of consumer regulatory authority in a single agency that has both rulemaking and enforcement authority. This will enable the BCFP to highlight potential consumer issues, issue new rules, and enforce them with minimal complication. The newly streamlined process will likely mean stricter rules on