Consumer Czar Says Financial Industry is Putting Up Roadblocks
There is a new sheriff in town. All Americans consumers now have someone watching their backs. Her name is Elizabeth Warren, aka the Consumer Czar, the head of the new consumer protection agency.
Warren says the financial industry is putting up roadblocks. Of course she is speaking in metaphors when she says roadblocks. Warren is referring to the industry's actions to thwart recent efforts to establish an effective consumer protection agency.
ABC News quotes the Consumer Czar at a recent speech she gave at the University of California, Berkeley, "We fought hard to get here, and those who tried to block the agency's creation have already said that they will be back. Every day, they spend money to find a way to cut back the agency's power -- even before its work has begun."
So how exactly does Warren plan to combat these roadblocks? As chairwoman on the Congressional Oversight Panel, the purpose of the Consumer Financial Protection Agency is simple -- to simplify credit contract language and give consumers more protections. In the simplification and protection process, Warren hopes to avoid another financial crisis like the one the U.S. recently experienced. In addition to greater transparency, Warren also advocates for better data collection on the financial-sector activities as a method for identifying a problem before it gets out of hand.
Like many other areas in need of regulation, lawsuits are also an approach promulgated by Warren to enforce fair and simple financial policies. Finally, using technology in various capacities was another avenue Warren wants to explore and employ in her battle to enforce consumer rights.
- Warren Says Technology Can Prevent ‘Capture’ of Consumer Agency (Bloomberg)
- Elizabeth Warren: Why We Need a Consumer Financial Protection Agency (FindLaw's Common Law)