Hawke's Message to Consumers

Comptroller of the Currency Jerry Hawke addressed the Consumer Federation of America in December and, as his theme, identified how he thinks the new banking law will benefit consumers and advance their fundamental interests.

First, Hawke pointed out that a strengthened financial system benefits everyone. In addition, experience shows that as competition is open and regulatory limits removed, consumers benefit from lowered costs and increased availability.

Hawke warned, however, that if institutions wish to take full advantage of the powers and permissions in the act, they must "listen more closely to consumers." In a more competitive market, the opinions of consumers are more important to hear and accommodate.

Privacy concerns and how banks respond to them will be a central dynamic in the future. Hawke reinforced his strong stand on consumer privacy, going so far as to criticize as patronizing the argument that we shouldn't permit consumers to opt out because we really know what is best for them. He also noted that the new act gives the regulatory agencies the authority to assure that customers are given full and fair notice before information is shared. And, he promised to use the restored authority to examine for violations of the Fair Credit Reporting Act.

Copyright © 1999 Compliance Action. Originally appeared in Compliance Action, Vol. 4, No. 16, 12/99