Today Elizabeth Warren was appointed as a Special Advisor to the President and Secretary of the Treasury on the upcoming Consumer Financial Protection Bureau. This new bureau will basically oversee the consumer credit market and try to eliminate hidden fees, but it is still being setup and is not scheduled to launch until July 21st, 2011. Warren has also been serving as the Chair of the oversight committee for the Troubled Asset Relief Program (TARP), which is the wildly successful bailout program of the financial sector. In an article written by Warren this morning about her appointment, she said that “the time for hiding tricks and traps in the fine print is over.”
If Warren and the new bureau is eventually successful in the elimination of hidden fees, expect the credit industry to simply raise their rates. As a result, consumers may become more reluctant to use credit.