Corrected: U.S. consumer bureau to have new rules in 2012

Official clarifies Warren’s remarks that she meant April 2012 for introduction of new consumer rules, not January 2012. Also clarifies number of new regulations being introduced under the Dodd-Frank Act from 34 to as many as 20, and clarifies that the Fed and CFPB are not working together on new regulations, but working on timing and implementation of the rules

By Joe Rauch

CHARLOTTE, North Carolina (Reuters) – New consumer financial regulations will be in place as soon as April 2012, according to the White House adviser helping to set up the new consumer financial protection bureau.

Elizabeth Warren, speaking at the 2011 summit of the National Association of Attorneys General, said the Consumer Financial Protection Bureau is working with the Federal Reserve to smooth the timing and implementation of the new rules. The new rules are mandated by 2010 Dodd-Frank Act, with some of the latest rules being crafted by the Fed taking effect early next year.

“There will be some, but not all, in place” by next January, she said in response to a question from the audience.

Federal regulators are responsible for up to 20 new consumer-oriented regulations by early 2013, Warren said.

The CFPB will take over much of the regulatory responsibility from the Fed over the next year. The agency was a key part of the financial industry reform legislation enacted into law last summer.

Warren said the CFPB will get its rule-making authority on July 21, when it is officially open for business.

Warren, a Harvard Law School professor, has been an outspoken consumer advocate and is serving as an adviser to President Barack Obama and the U.S. Treasury Department to help set up the new agency.

She has long been considered a potential nominee to be director of the CFPB, but she has been controversial and may have trouble winning Senate confirmation.

The agency will police mortgages and credit cards and try to curb predatory practices in the financial industry.

(Reporting by Joe Rauch; editing by Andre Grenon and John Wallace)

Corrected: U.S. consumer bureau to have new rules in 2012