WASHINGTON -- A key House panel voted Thursday to create a new federal agency to police financial products offered to U.S. consumers, advancing a key part of the White House's proposed overhaul of financial rules.

The House Financial Services Committee voted 39 to 29 to create the Consumer Financial Protection Agency, which would have broad reach to examine and punish companies ranging from one-room payday loan stores to huge banks like Bank of America Corp.

Lawmakers...