What does the Dodd-Frank Act do for consumers?

For the first time in over twenty years, Congress made more changes in consumer protection laws by enacting the Dodd-Frank Act.  Publ. L. No. 111-203, 124 Stat. 1376 (2010).    The Dodd Frank Act was signed into law on July 21, 2010.  The Dodd Frank Act includes consumer protection provisions in Title X and Title XIV.  Here are some of the Title X provisions that became effective July 21, 2011 See 75 F.R. 57, 252 (Sept. 20, 2010):

  1. Equal Credit Opportunity Act (ECOA) statute of limitations increased from two years to five years.  The new greater statute of limitations applies only when the two-year statute of limitations has not run as of July 21, 2011.  See Thistlewaite v. Dowty Woodville Polymer, Ltd., 6 F.Supp. 2d 263 (S.D.N.Y. 1998); see also Papenthein v. papenthein, 120 F.3d 1025 (9th Cir. 1995); Motley v. Motley 60 F. Supp. 2d 380 (D.N.J. 1999).
  2. The Truth In Lending Act’s (TILA) exemption for specific transactions was raised to an amount financed over $50,000.  Previously, the exemption applied to amounts financed over $25,000. See F.R. 35, 722 (June 20, 2011).
  3. Credit scores must be disclosed.
  4. Deposited funds immediately available from a bank increased from $100 to $200.
  5. The Consumer Financial Protection Bureau began operations and took over various authorities from the Federal Reserve Board and federal banking agencies.

As of today, not all of the new provisions have gone into effect.  For example, in Title XIV, provisions concerning mortgage loans, do not go into effect until the effective date of those regulations.  Dodd Frank Section 1400(c)(2).  All regulations must go into effect no more than one year after the regulation’s enactment.  Dodd Frank Section 1400(c)(1)(B).  In the event the final regulation is not enacted by January 21, 2013, then the statutory provision, as written, goes into effect on January 21, 2013.  Dodd Frank Section 1400(c)(3). 

We are dedicated to protecting consumers’ rights.  We represent clients all over the country in various consumer matters including credit report errors, identity theft and fraud.  Call us 24/7 at 1-800-263-9091.