What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a major piece of legislation passed by the U.S. Congress in 2010. This federal law was designed to provide oversight and regulation to the financial industry, including banks, in order to protect consumers and prevent another financial crisis like the one experienced in 2008. The Act created the Financial Stability Oversight Council, which is responsible for regulating large financial institutions. It also established the Consumer Financial Protection Bureau (CFPB), which is tasked with enforcing consumer protection laws. In addition, the Act required that banks follow certain lending practices, such as avoiding loan discrimination, setting limits on the amount of fees that can be charged, strengthening consumer privacy protections, and providing fee disclosure documents to customers. In California, the Dodd-Frank Act has been used to create additional regulations for the financial services industry including requiring banks to register with specific departments of state and federal governments in order to be authorized to do business. It also created guidelines for financial disclosure and transparency and established a bond system for banks, ultimately providing additional protection for consumers.

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What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?

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