IL AG urges consumer protection agency

October 14, 2009 Madigan and consumer advocates talked about it Wednesday at the Thompson Center. She says idea is to protect consumers from excesses that spurred the current economic crisis.

A consumer financial protection agency would protect people by setting and enforcing national rules for the financial services industry related to mortgages, credit cards and payday loan industries.

The agency would also give state regulators including attorneys general the authority to enforce the consumer protection laws.

"States must be allowed to maintain this critical role as first responders not all problems are national in scope so they often require more localized efforts to provide effective remedies," said Lisa Madigan, Illinois attorney general.

House resolution 3126 would create the new agency. The bill is currently before the House financial services committee.