With the backing of the Obama Administration, the Financial Product Safety Commission (FPSC) could soon become a reality. President Obama has been meeting with industry officials and lawyers to discuss launching a new federal agency to protect consumers of everyday financial products, such as credit cards, checking accounts and mortgages.

This comes at a time when the credit card industry has claimed credit card legislation will increase fees, reduce rewards and limit credit - to even good customers – since it will be harder for them to gouge consumers. Consumers Union finds these claims untruthful and feels the credit card industry is in no position to be making threats given the heated climate they find themselves in.

The truth is that credit card issuers will still need to compete for customers, and special offers and rewards plans are key tools for attracting consumers and ensuring that customers use their card over the competition. Negative impacts on consumers will be small, especially when we consider the decrease in interest debt that people will face. In fact, stronger regulations will help the economy by ensuring that credit card users have more money to spend on real goods instead of interest.

In the big picture, the FPSC will greatly improve the current regulatory structure by reducing inefficiencies and putting consumer interests on the table where they belong. Just as the Consumer Product Safety Commission protects consumers from dangerous consumer products, the FPSC will proactively examine new financial products and practices in order to prevent harm to consumers before it happens.

Congress is considering a bill to create this new agency. Tell your congressional representatives that it’s time to put some tough new rules on those selling financial products!

Get the facts on the Financial Product Safety Commission Act of 2009!