As part of Congress’ sweeping financial overhauls, a new consumer bureau will overlook the lending industry, helping consumers avoid falling victim to scam artists in the car loan business.
The new government agency, dubbed the Consumer Financial Protection Bureau, will pull employees from previous government agencies who formerly worked on consumer protection, according to the Washington Post. Before the financial crisis, seven separate regulators were responsible for various industries, including car loans, credit cards, banks and mortgages.
However, none of those bureaus treated consumer protection as their sole or even primary focus. This lack of oversight is part of the reason for the financial meltdown. Under the new system, Treasury Secretary Timothy Geithner will handpick employees with experience in the field to head up the new, streamlined agency.
The CFPB will be responsible for handling consumer protection in various industries. Its designed both as a new resource for American citizens and to ensure that the country doesn’t lend its way into another financial crisis.
One way that those thinking about a car loan can avoid scams is to apply online through a trusted company.