July 15th, 2010
All 2,319 Pages Of The Financial Reform Bill Passes!
“Because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes,” says President Obama.
Congress just passed the massive Wall Street reform bill that aims to prevent another financial crisis the size of The Great Depression and our own economic meltdown in 2008. The bill attempts to curb Wall Street abuses, increase government oversight, protect consumers from predatory lending, and clarify shady aspects of the banking system. Obama is expected to sign the bill next week.
Our financial crisis of 2008 prompted the creation of comprehensive regulations to overhaul key financial industries and makes it easier for the government to remedy future economic disasters. Though this legislation has a long road ahead to implement all provisions, here are four impending changes we are excited about:
- A Consumer Financial Protection Agency will shield consumers from abuses from financial industries. While it remains to be seen just how this agency will function and how much authority it will have, it aims to set standards on mortgages, credit cards, payday loans, and more, as well as an oversight council to unite several regulatory agencies.
- Lower swipe fees. Interchange fees, the processing fee merchants pay to banks every time your credit and debit card is swiped, may be lowered, and the savings passed on to consumers.
- Free credit score! Under certain circumstances, such as being denied a loan or insurance due to credit, consumers will be able to check their credit score for free. For the rest of us that don’t fall into these special circumstances, there’s always Credit Karma to lend a free, helpful hand.
- Credit card interest rate cap. Finally! The CARD Act required notifications to consumers about interest rate hikes, but never capped rates. This provision limits interest rates to 15 percent. It also prohibits issuers from charging additional fees that evade the cap on finance charges.
Check out The White House Blog’s video of Obama speaking on the final passage of Wall Street reform. “From now on, every American will be empowered with the clear and concise information to make financial decisions that are best for you,” he says.
We have our fingers crossed. There is still much, much work to be done to carry out and execute these reforms, but hopefully we will see a stronger economy and a more consumer-friendly marketplace in the near future.
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