The last several weeks have provided a number of positive trends for consumers.  First, as widely reported in the media, the Obama administration has proposed the development of an agency to be known as the Consumer Financial Protection Agency to set standards for banks and mortgage lenders to follow for mortgage loans, investigate financial institutions and enforce the new credit card consumer protection laws recently passed by Congress.  The new agency would step in and centralize responsibilities that are now divided among several governmental agencies, and would have the authority to restrict or prohibit mortgages that take advantage of consumers through hidden fees. The proposal is strongly supported by consumer advocates and, not surprisingly, is drawing the ire of the banking industry.

As the administration moves forward with attempts to strengthen consumer protection in light of the ongoing financial crisis, the administration is clearly moving away from the position of the Bush administration seeking Federal preemption of state regulations.  The Obama administration appears to be encouraging states to take a stronger stand on behalf of consumer protection – a move that could be seen as a major turning point for consumers across the country.

In another interesting development, the Third Circuit Court of Appeals has issued an opinion finding the Federal Nursing Home Reform Amendments allow residents of county-run nursing homes to seek redress for poor treatment under the civil rights laws of the United States.    As the Court stated, “The language used throughout the FNHRA is explicitly rights-creating.  … These provisions make clear that nursing homes must provide a basic level of service and care for residents and Medicaid patients.”  The Court went on to state that residents of county-run nursing homes have the right to be free from abuse, involuntary seclusion, and discipline that is physical or chemically restraining that is not required to treat a medical condition or symptom.    Hopefully more Circuits will adopt this opinion and bring the protection so desperately needed to nursing home patients across the country.