In the near future not one million of American workers will have to deal with the regulation changes in consumer credit legislation, as a new bill on financial reform is going to be enacted. It means that the financial situation of many of them will worsen. The new bill is a subject to criticism of many experts, as it can diminish thousands of jobs and the possibility of getting credit for many Americans, who already have limited credit alternatives when they are in debt, during the economic recession.

The bill was developed by Senator Chris Dodd. It is aimed at the mitigation of the supreme mortgage crisis’s and financial recession’s consequences. But many people think that the bill concerns the wrong sector of economy. The new reform is not likely to affect such mortgage companies as Fannie Mae and Freddie Mac, which are supposed to be the origin of the crisis. Instead, small lending companies, providing short-term loans to the population, have to settle the problems, to which they don’t have any attitude.

There is not much time before the enactment of the bill, but the main mass media members such as USA Today and the Wall Street Journal are trying to express their unfavorable opinion of the bill in the numerous articles in order the Senators not to vote for it. The most obvious drawback of the new act is its’ intention to regulate and control all the types of small consumer credit, which is already under high regulation. E.g., Americans go to the dentistry and dental procedures cost a lot of money to them. It is quite common that they need financial help for curing teeth, so that they ask for a loan. There are a lot of dental offices, which can offer such a service right inside their office. But if the bill will be signed, it will not happen ever again.

Payday loan lenders are another subject of regulation of the bill. Payday lending companies, including Cash Net USA and paydayloanjr.com, are providing their customers with the loans, which can not be offered by banks and other credit institutions. Only direct lenders will be subjected to the new regulation, while websites which don’t offer loans by themselves, but act as intermediaries between lenders and borrowers, will be not controlled by authorities. Although, today the direct lenders are already under regulation of the States’ legislative acts, they will face with more strict conditions. That won’t let middle-class families get cash advance loans, which are very helpful to them while they are waiting for the next paycheck.

As for now, we are hoping that the protesting movement of the mass media will help to change the situation and the Senators will vote against the reform. It will avert excessive regulation, which actually is harmful to the US economy and is decreasing the number of working places. Moreover, the government shouldn’t monitor financial products, which are already strictly monitored and are not responsible for the economic crises. It would be better if the Senators regulate the industries that really caused the crisis, such as derivatives and mortgage companies.