House panel OKs consumer protection bill

WASHINGTON, Oct. 22 (UPI) -- A U.S. House committee Thursday gave its blessing -- largely along party lines -- to the creation of a new Consumer Financial Protection Agency.

The House Financial Service Committee, on a 39-29 vote, passed the bill that would create the agency with power to regulate financial instruments such as home loans and credit cards, The Hill reported.

Democratic Reps. Walt Minnick of Idaho and Travis Childers of Mississippi voted against the agency, while Rep. Mike Castle of Delaware was the lone Republican to cast an "aye" vote. Castle is running for Vice President Joe Biden's old Senate seat.

"The Consumer Financial Protection Agency will prevent predatory lending practices and other abuses and will ensure that consumers get clear information they can understand about financial products like credit cards and mortgages," President Barack Obama said when congratulating the committee on its vote.

Committee passage signaled to consumers that "we will not stand by and allow big financial firms and their lobbyists to mobilize against change," Obama said.

Obama and U.S. Treasury Secretary Timothy Geithner will work with House and Senate leaders to pass the bill that would "create one agency focused on one simple mission -- protecting consumers," Geithner said.