Senate Takes Up Prof Warren’s proposed Financial Product Safety Commission
Law Professor Elizabeth Warren proposes that Congress create a Financial Product Safety Commission to help protect consumers from predatory and deceptive financial products. To illustrate the need for such a commission, Prof. Warren points out that if a consumer goes into an appliance store looking for a toaster that has a 1 in 5 chance of exploding, you won’t find one. But if you go to a mortgage broker, you can buy a loan that has a 1 in 5 chance of ending up being foreclosed with you losing your house in the process.
Introduced by Senators Schumer and Durbin, the bill would create a commission responsible for identifying practices that undermine sound markets and to educate consumers on the responsible use of financial products and services.
Prof. Warren is the chairwoman of the Congressional Oversight Panel monitoring the Treasury’s economic rescue plan and the author of numerous articles and books on the ways in which consumers get into financial trouble.