Consumer Protection and Regulatory Changes in the Dodd-Frank Bill
1 September 2010
By Dr. Ethan Cohen-Cole
Second in a NERA series examining the impact of the new financial regulations
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) 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.
In this paper, the second in a NERA series examining the impact of the new financial regulations, Dr. Ethan Cohen-Cole -- Assistant Professor in the Finance Department of the University of Maryland Robert H. Smith School of Business and Special Consultant to NERA -- discusses key provisions of Dodd-Frank that pertain to the consumer finance industry. As Dr. Cohen-Cole notes, the consolidation of consumer regulatory authority into a single agency that has both rulemaking and enforcement authority 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 disclosure for retail financial products, including disclosures on product design and a greater chance of regulatory action.
Other papers in the series:
Economic Analysis in the Federal Rule-Making Process to Implement the Dodd-Frank Wall Street Reform and Consumer Protection Act
By Dr. James Overdahl
What Do the New Risk Retention Requirements of the Dodd-Frank Act Mean for Securitization?
By Dr. Faten Sabry
Summary of Dodd-Frank Rulemakings and Studies
