In 2007, a Harvard law professor, Elizabeth Warren, urged the creation of a consumer financial protection agency to guard against abusive, unfair and deceptive lending practices.

Consolidates authority for protecting consumers, which is currently dispersed, into one free-standing Consumer Financial Protection Agency, with an independent director, appointed by the president.

Gives the new agency broad powers to write as well as enforce rules for banks, credit unions and other financial companies.

Exempts certain categories of businesses, including retailers and auto dealers, from the new agency’s oversight.

Preserves the federal ability to pre-empt tougher state consumer protection laws under certain circumstances.