Administrator Emeritus
Posts: 4,444
Registered: ‎03-01-2007
What you should know about the Dodd-Frank Act
[ Edited ]

Hello FICO Forums community!


The Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173) is a piece of legislation proposed by U.S Senate Banking Committee Chairman Chris Dodd that is part of President Obama’s financial regulatory reform plan of 2009.  While much has changed and will continue to change with this act before passage, it aims:

To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.

Some key provisions of this legislation include:

Free Credit Scores

Consumers will have the right to a copy of their credit score if they were turned down for a loan, or if they were offered a rate other than the rate that the lender gives its best customers.


Lenders will not be allowed to pay mortgage brokers a commission based on an interest rate for a home loan to remove the incentive for mortgage brokers to put borrowers into a high interest rate loan; prepayment penalties will be limited or prohibited, depending on the type of loan; and before a loan is approved, lenders will be required to determine if a borrower can realistically can pay the mortgage payments, insurance and property taxes.

Interchange Fees and Use of Payment Cards

Stricter limits will be imposed on “Interchange Fees” -- fees that banks charge retailers when a customer pays with a debit or credit card – for debit card purchases only.


A newly-created federal agency called the Bureau of Consumer Financial Protection will have the authority to regulate mortgages, credit cards, payday lenders, check-cashing companies and lenders that provide private student loans.


The folks at FICO want to know what you think about this historic extensive overhaul of laws governing U.S. lending institutions.  Do you think it goes far enough?  Too far?  What would you add or eliminate?  Do you feel protected?


Please share any thoughts you might have on this topic by replying to this post.   Many thanks for your contributions!



Formerly consumer affairs manager, media spokesman and myFICO Forums community manager at FICO, I'm now freelance writing for and my own site,