Calling Financial Regulatory Reform legislationÂ signed into law Wednesday by President Barack Obama a “victory forÂ consumers,”Â Illinois Attorney General Lisa Madigan, in a prepared statement,Â said it restores some of the powers of the states to pursue actions against financial institutions which violate state laws.
Madigan, in Washington, D.C.Â where President Obama signed Financial Regulatory Reform into law, saidÂ the legislationÂ isÂ “the most sweeping consumer financial reforms since the Great Depression.”
“Historically, the new law creates a separate ConsumerÂ Financial Protection Bureau within the Federal ReserveÂ to protect consumers from financial Â abuses like predatoory lending that went unchecked by federal regulators and nearly brought down our economy.Â Â The new Bureau will oversee consumer lending including mortgages, credit cards and student loans.”
Madigan said that was a critical component that Big Banks spent hundreds of millions of dollars trying to defeat. More information can be found by clicking hereÂ .
Madigan also noted that the new financial reform law also prohibits lenders from making predatory loans that lenders know borrowers cannot repay, and lenders would be banned from receiving incentives for steering people into high rate loans when they qualify for lower rates. Consumers are also protected from abusive loan fees and penalties for prepaying.
“This new law finally gives consumers a voice on how banks, mortgage lenders, credit card companies and payday lenders are regulated to protect our financial interests and not just those of financial institutions,” said Madigan.