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One part of the law many consumers may notice is the new rule requiring lenders to tell you your credit score if they use it to deny you credit. That’s important because right now, consumers only get to see their credit report, with general information about their credit histories, once per year, and that report doesn’t include the actual score that lenders use to evaluate your creditworthiness.
So the next time you’re denied a loan, as of Thursday you can ask the simple question “Why?” And now the lenders have to tell you.
Why is it that we earn interest (though lately not much) on savings accounts, but none on checking accounts? Dodd-Frank could change that. Prior to the law’s enactment, it was illegal for banks to pay customers interest on checking accounts. As of July 21, institutions are allowed to start offering such accounts (though they’re not required to).
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So far, six federal agencies have been responsible for bringing lawsuits against companies accused of violating consumer protection laws.
As of July 21, that power transfers over to the CFPB. There’s a chance the new bureau will take a more adversarial stance in some of those lawsuits, since some agencies—notably, the Office of the Comptroller of the Currency and the Office of Thrift Supervision—have been consistent defenders of financial institutions in other areas like predatory mortgage rules.
During the 1990s and early 2000s, big bank mergers made the news almost weekly. Under Dodd-Frank, though, institutions must prove they are well-capitalized and well-managed before they can merge. That could mean an end to shenanigans like Washington Mutual’s purchase of Commercial Capital Bancorp in 2006, two years before WaMu’s disastrous investments in subprime mortgages caused the bank to fail in what amounted to the largest savings and loan bankruptcy in U.S. history.
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Image: Official White House Photo by Lawrence Jackson, via Flickr.com
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