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Does consumer agency matter to us?
Credit cards and padlock symbolize consumer protection and security
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TEXT OF STORY
Tess Vigeland: The latest word on a new consumer watchdog agency for financial products is that it would become part of the Federal Reserve. President Barack Obama has said repeatedly that he wants an independent agency. But, as we outlined on yesterday's show, the financial industry is doing everything it can to stop that idea.
We wondered where consumer sentiment lies for an idea that's designed to protect them. Reporter Brett Neely went in search of an answer.
BRETT NEELY: Mail in favor of an independent financial watchdog for consumers is flooding Capitol Hill, says one Senate staffer.
Travis Plunkett at the Consumer Federation of America says just look at the polls.
TRAVIS PLUNKETT: Americans have been asked again and again about this, and it's pretty clear that they want a watchdog that's focused only on protecting them.
He says consumers want protection from dangerous financial products.
Richard Sanner is a retired minister in Surry, Maine.
RICHARD SANNER: I know I don't understand some of this stuff, and I have a bachelor's and master's degree in management, and I've taught economics.
Sanner says he's seen members of his church get burned by high fees and even higher interest rates.
SANNER: 25-30 percent interest rates! That's usury, that's outrageous!
Constance Bevitt of Silver Spring, Md., is worried the Senate will neuter the idea.
CONSTANCE BEVITT: I would hate to see them become just another agency lost in, you know, the bowels of the federal government somewhere.
But there's plenty of skepticism about whether the government is even up to the task.
Patrick McGuire lives in Madison, Wis.
PATRICK MCGUIRE: I'm for the idea, I'm for the principle, however, I'm not certain that they're going to be able to make it succeed.
McGuire just finished teaching a class of fifth graders about managing money. He says they get it.
MCGUIRE: I heard some more intelligent questions and debates from the fifth graders than I've heard from the politicians and on the news programs.
To avoid a repeat of the financial mess, McGuire is pinning his hopes on education, not on a new agency.
In Washington, I'm Brett Neely for Marketplace.
I agree with Jon Lovelace: let the consumers have the right to litigate against the banks who concoct ambiguous, incomprehensible credit card and mortgage contracts. If two citizens entered into the kinds of contracts drafted by credit card banks, it would be found to be void for ambiguity and unconscionability. But, of course, all the wonderful tort reform we've had has shot that in the leg, not to mention bringing these cases in front of bought off judges...
The nine most frightening words in the English language: "I'm from the government and I'm here to help." If consumers truly need more protection from something other than the consequences of their own stupidity, Congress should give them the power to protect themselves; the trial lawyers' lobby would probably approve of letting consumers sue banks for excessive fees, for instance.
It is a cruel joke. Feds main interest is in the welfare of Banks.
Their only purpose is to debase currency and supply those newly printed money to banks at lowest possible interest.
They have failed existing regulatory duties miserably.
This is like fox guarding hens.
Education.....that's a novel approach! All kidding aside what's the point of putting a watchdog agency inside an institution like the Federal Reserve. Remember Alan Greenspan? The fan of Ayn Rand and the champion of deregulation was chairman, remember? Now someday, maybe not soon, but someday we'll have another Fed chairman like Alan. How much power do you suppose an internal Federal Reserve watchdog agency would have then? That would be the time we would need the watchdog the most, and the watchdog would be neutered for sure. It's got to be independent.
