The anti‐predatory lending rules of the Dodd‐Frank Wall Street Reform and Consumer Protection Act – especially those related to mortgages and credit cards – are based on the theory of ‘behavioral economics.’ That in turn has produced a stronger kind of federal regulator, in the form of the CFPB, and in stronger consumer protection laws, according to a new legal abstract. “These new legislative and regulatory developments mark a shift from the ‘rational consumer’ theory that underlay the great disclosure statutes of the late 1960’s and early 1970’s, such as the Truth in Lending Act, and toward the rising influence of ‘behavioral economics’ as a guiding force in consumer protection,” explained Dee Pridgen, professor of law and social responsibility at the University of Wyoming College of Law. ...