Waters Wins Big for Consumers in Wall St Reform and Consumer Protection Bill

The Wall Street Reform and Consumer Protection legislation passed by the House includes a number of provisions introduced and championed by Congresswoman Maxine Waters (D-CA) to strengthen consumer protection.

"This legislation shows we are on the side of working families by protecting them from the greed, excessive risk and fraud," said Congresswoman Waters. "I believe that this legislation, with my amendments that advocate for consumers and students, will make financial information accessible and understandable so that all consumers can make informed decisions, knowing that regulations are in place – and will be enforced – to look out for their best interests."

Strengthening Consumer Financial Protection
The legislation creates a new Consumer Financial Protection Board (CPFB) that will have the power to regulate the activities of banks, credit card companies, payday lenders and other institutions that provide financial services to consumers. Congresswoman Waters worked to make sure the CPFB fully represents and protects consumers.

Representing the Interests of Consumers:  Congresswoman Waters strengthened the CFPB by adding an expert in consumer protection to its Advisory Board. Having someone who has specific experience representing the interests of consumers serve on the Advisory Board provides an important check to the interests of big banks and financial institutions.

Protecting Students from Unscrupulous Lenders:  Far too many proprietary schools have been ripping off students across the country.  Many of these schools are highly profitable because they receive significant amounts of federal student loan money; schools can qualify to receive as much as 90 percent of what students pay from Pell grants if 10 percent of their loan funding comes from private sources. The private loans these schools make to their students have extremely high interest rates, kickbacks and fraudulent signatures. In fact, 23 percent of students default on these loans compared to the default rates of 6.5 percent at private non-profit schools and 9.5 percent at public universities.  To help protect young students from unscrupulous lenders, Congresswoman Waters worked to include a provision in the final financial regulatory reform bill that would allow the Consumer Financial Protection Bureau to regulate all proprietary institutions and other private student lenders.

"This legislation has been designed to prevent another financial crisis, to reform how Wall Street and the nation's major financial institutions operate, and to protect American consumers from predatory loans, excessive bank charges and credit card fees. Families and small businesses on Main Street in cities and towns across the country will benefit from our efforts to hold Wall Street accountable," the Congresswoman said.

Congresswoman Waters served on the House-Senate conference committee that reconciled differences between House and Senate versions of the legislation. She negotiated with her colleagues, among both Democrats and Republicans, to include these provisions and others in support of the following priorities:

• Helping Homeowners
• Empowering Shareholders and Preventing Conflict of Interest
• Increasing Access and Opportunity for Minorities

The Wall Street Reform and Consumer Protection Act protects savings and investments of American families and small businesses by making the financial system more transparent and accountable, closing loopholes that big banks have exploited, and ending taxpayer-funded bailouts of Wall Street firms who made reckless decisions. To learn more about this legislation, click here.

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