Where Was The Office Of Consumer Credit 2002-2008?

The office of consumer credit is an agency that is supposed to educate borrowers and creditors about the effect that different loans can have on the economy. They also help to regulate the credit industry and help to ensure a fair and healthy credit environment. With the downturn in the economy in 2008 many would like to know what the office of consumer credit was doing to help prevent the many bad choices that effected individuals and businesses alike.

Education

Many different consumer credit offices were warning against a lot of the loan choices that were on the market. Lenders and banks allowed a record number of stated loans, while simultaneously reducing FICO score requirements. Loans that were once based on credit history and ability were no longer commonplace in the market. Additionally, jumbo loans were borrowed with special loan categories, such as the interest only loans, and that placed borrowers in bad positions because they could not always afford their payments. They were going against the recommendations of many consumer credit agencies.

Personal Banking

The office of consumer credit cannot tell banks and lenders what terms to use for their loans. They can uphold guidelines already in place or help to create new guidelines that help to protect individuals. Personal banking laws are not an area of government they are able to regulate.

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