Synopsis: The negative impact of financial reform to the consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A synopsis of financial reform exposes the reality of the present and future negative impact to the consumer, and the elements of reform missing that directly affect the consumer. First, the recent debacle over the bank’s proposed debit card fee is a direct result of financial reform. The transparent system of Visa/MasterCard paying banks for every consumer transaction made using Visa/MasterCard was not a contributor or factor in the financial crisis. The financial reform bill cap these exchange fees for banks. The loss of revenue for the banks is a negative for the consumer. The loss of benefit for the consumer include free checking, debit and credit card rewards, and waiver for annual fees for credit/account fees waivers on debit cards are no more in lieu of financial reform. Second, new regulation will restrict credit access to consumers and small business by limiting product choices and private credit offerings. The third negative impact of financial reform is the absolute absence of regulation against non-financial entities or third-party vendors acting on the behalf of the financial services industry. This includes debt collectors, credit bureau reporting agencies, and vendors employed in the real estate foreclosure process. The absence of prudent regulation has opened the door of abusive practices inclusive of all consumers including creditworthy and innocent consumers as bad actors in the financial system impervious to consequence by the legal system.  TO BE CONTINUED….

 

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