“We need to make it easier for families to have a better control of your financial life,” said Treasury Secretary Michael Barr.

The next step for regulatory review legislation is a final vote of the Senate in the coming months, followed by a hash of the differences with the Parlamento.Pasaje is by no means certain.

Mortgage prepayment penalties

Generally speaking, invoices license much margin for the proposed consumer regulator determine which practices should be detained or limited. However, the Congress is more prescriptive in one case: cracking down on the penalty to pay the mortgage early fees.

Free credit reports: not as free

The new regulator of the consumer must prohibit these penalty for mortgage rates subprime and cover and progressively rates for more traditional mortgages according to law.

Most common markets subprime rates charged when a loan is repaid or restructured in the first three to five year.povidone penalty can run 5% of the loan or several months of interest payments.Consumers often according to the rate, the risk because it allows you to lock in a rate of subprime comparatively lower.

The banking industry said that sanctions can guarantee a return to investors while helping to risky borrowers.

“” If properly disclosed, sanctions allow consumers to make better decisions, “said Tom Koonce, head of the Mortgage Bankers Association lobbyist.”It is a valuable tool for lowering rates.And if take away you, you will risk rates are higher.

However, sanctions can catch some borrowers subprime loans and improve their credit scores which prevent them from obtaining cheaper loans, said Mark Flannery, Professor of finance at the University of Florida Graduate School of Business.

“These sanctions are going to make it unlikely that someone advance mortgage”, said Flannery.Sin however, agreed in that put an end to the sanctions could lead to higher rates of the mortgage.

The proposal goes beyond federal reserve 2008 efforts to limit penalties on mortgages subprime and is being hailed by consumers for nixing advocates a “key ingredient to the mortgage crisis subprime,” said Center for Responsible Lending spokeswoman Kathleen Day.

Arbitration agreements

Many mortgages, credit cards, gift cards and loans to force the buyer and seller to hash to disputes by a neutral party called an arbitration panel.

These contracts arbitration avoid disputes go to court, with an eye towards the imposition of the parties to work out things and reduced litigation.

But consumer advocates and finance officials do not like the compulsory part of the contratos.Quieren consumers to choose between arbitration and Court.

Camera Bill directs the consumer slider to consider the possibility of prohibiting forced arbitration for sales of financial products such as crédito.El cards Senate said that monitoring is needed to study before prohibit or restrict them.

“” If you cannot go to court or join a demand action class, perpetuated unfair practices,”said Ed Mierzwinski, director of the national programme of consumer (U.S.) public interest research groups.”"Companies can ignore the complaints from consumers because they know not escalate to litigation”.

Industry groups say mandatory arbitration agreements reduce the cost of providing products and services, by the reduction of litigation.

“These efforts are actually a Trojan horse for lawsuits,” said Bryan Quigley, spokesman for the U.s. Chamber for legal reform Institute.

“Said that many lawyers do not take credit card cases more pequeñas-dólar.”Most people have no access to justice to todos.En of having an output of arbitration, to be forced to sue, “said Quigley.”But if they cannot find a lawyer they can not sue.

Financial literacy

An important role in the monitoring of financial consumer protection proposed is to teach Americans to be more financially literate.

The Senate version creates a financial literacy Office and the camera creates a financial protection for the mayores.En Office both cases, the bodies created or adopting programs that teach Americans about savings, loans, embargoes and rates.

Agencies would establish best practice standards for financial, preventing Americans, especially in older persons, becoming victims of fraud or be directed to the purchase of certain financial products advisory programmes.

Economist cry: break up the banks!

“With everything that has happened to the economic crisis might think there is so much economic education alrededor.Pero there,” said Cindy Housell, President of the Institute of women for a secure retirement.

Financial literacy Agency would also streamline the existing programmes of agencias.Por example, the Department of Defense has programs to train soldiers to inspect the financial products abusivos.Bajo this proposal, the Consumer Agency and the Department of defense would work together.

“” We are concerned about situations where auto lenders and consumer finance companies take advantage of young military families that is bad for families, bad for the military and harmful to the military security,”said Barr”.”Financial literacy programmes would continue, but with the help of regulator (consumer) to communicate best practices.”

0: 00 / 5:30Financial product security

Banking lobbyists, including financial services, support the general concept of financial literacy, said Scott Talbott, chief lobbyist group Roundtable.

However, advocates worry that none of the Bills specifies a source of funds for new financiera.Los literacy programmes existing financial literacy programmes as they are stumbling by lack of resources, said Housell.