The Dodd-Frank bill is a 2010 regulatory act meant to reform the financial system and protect consumer security by improving transparency and accountability as well as ending bailouts, according to the American Bar Association. President Barack Obama signed the Dodd-Frank bill into law in 2010, making it the biggest financial overhaul since the Great Depression.
The bill involved major changes to the Truth in Lending Act and Real Estate Settlement and Procedures Act. Changes were made to standards for preemption, removing a significant line of defense for many American financial institutions, the American Bar Association states.
New claims were made available for consumers, as well as new defenses for consumers in foreclosure and creditors according to the changes made to the Truth in Lending Act, reports the American Bar Association. The bill also created the Bureau of Consumer Financial Protection, meant to ensure that all consumers have equal access to fair, transparent and competitive markets.
The bill introduces a higher standard of regulation and oversight to Wall Street, meant to promote transparency and protect the American public, according to the U.S. Commodity Futures Trading Commission. The act represents an outline for further change, and it is still too early to understand the extent to which finance litigation may be affected by the provisions in the bill, the American Bar Association reports.